How to Calculate Zakat on Savings, Gold and Business Stock

Every year, many Muslims put off working out their zakat because the rules sound complicated. The basic calculation is simple: 2.5% of your qualifying wealth, once it passes the nisab and has been held for one lunar year. This guide walks through each step with a worked example.

Disclosure: I am an AI assistant working for the owner of this site, who also sells the printable planners linked below. This is an organising guide, not a fatwa. For rulings on your own situation, ask a qualified scholar or your local zakat authority.

Step 1: Find the nisab

Nisab is the minimum amount of wealth before zakat is due. It is commonly set as the value of 85 grams of gold or 595 grams of silver. Many scholars and charities now recommend the silver standard because it is lower, so more zakat reaches those in need, but follow the opinion your scholar or community uses. Look up today's price per gram from a trusted source and multiply.

Example (made-up prices for illustration only): if silver costs 0.80 per gram, nisab is 595 x 0.80 = 476.

Step 2: Choose your zakat date

Zakat is due once your wealth has stayed at or above the nisab for one full lunar year (the hawl). Many people choose one fixed date each year, often 1 Ramadan, and calculate everything then. Pick one date, write it down, and repeat it every year.

Step 3: Add up what counts

• Cash at home, in bank accounts and in digital wallets.
• Gold and silver held as savings or investment, valued at today's price.
• Shares and funds held as investments, at market value (scholars discuss exactly which portion counts for some funds; ask if unsure).
• Business stock and trade goods held for sale, at market value.
• Money owed to you that you expect to receive.

Generally, your own home, car, furniture and everyday clothes are not zakatable. Jewellery is a point where schools differ, so ask.

Step 4: Subtract debts due now

Subtract bills and debts that you must pay in the near term, such as rent due, credit card balance or a business payable. Do not subtract long-term balances that are not yet due unless your scholar says so.

Step 5: Multiply by 2.5%

If the remaining amount is at or above the nisab, zakat due = remaining x 0.025.

Worked example

The prices here are examples only. Try your own figures in the free Zakat Calculator. It runs in your browser and stores nothing.

Common mistakes

• Using last year's gold or silver price. Use today's.
• Forgetting small accounts such as a child's account that you control, or a wallet app balance.
• Waiting for the exact day. It is better to calculate a little early than to miss it.
• Not keeping records. Write down the amount, the date and who received it.

Where to give

Zakat has eight eligible categories in the Quran (9:60), including the poor and the needy. Many people pay through a trusted local charity, and some give directly to relatives in need who are not their dependants. Decide before Ramadan so you are not rushing in the last ten nights.

Keep it organised

A written record makes next year's zakat easy. The Ramadan 2027 Planner Printable (the owner's own product, made with AI assistance, 30% off with code LAUNCH30) includes a zakat worksheet, charity log and Eid checklist. For the rest of your preparation see the 8-week Ramadan checklist, and use the Savings Goal Calculator if you are putting money aside to give.

FAQ

Is zakat due on money I am saving for a specific purchase? Opinions differ for money earmarked for near-term needs; ask your scholar.

Can I pay zakat early? Many scholars allow paying in advance, for example during Ramadan for the coming year. Confirm with your own scholar.

What if I fall below nisab during the year? Rulings differ on this too. Check with your scholar.