Zakat Calculator

Calculate your Zakat obligation using our interactive calculator. Zakat is the third pillar of Islam, requiring eligible Muslims to give 2.5% of their wealth above the Nisab threshold to those in need. This calculator helps you determine your Zakat on various asset types including cash, investments, retirement accounts, and more.

Understanding Nisab

Nisab is the minimum threshold of wealth that makes Zakat obligatory. The Nisab threshold is typically based on the value of gold or silver, and the specific amount may vary by scholar and current market prices. You must meet or exceed the Nisab threshold for a full lunar year (Hawl) before Zakat becomes due.

Because Nisab values are tied to precious metal prices, they fluctuate with market conditions. Different scholars may use different standards (gold-based or silver-based), and practices may vary. Always consult with a qualified Islamic scholar or your local mosque for the most current Nisab calculation method applicable to your situation.

Once you've determined that your wealth exceeds the Nisab threshold for a full year, you calculate Zakat at 2.5% of your eligible assets. Not all assets are subject to Zakat—some assets like your primary residence, personal vehicles, and certain business inventory may be excluded depending on your circumstances and scholarly interpretation.

What Assets Are Subject to Zakat

Zakat applies to wealth that is considered "growing" or "productive" and has been in your possession for a full lunar year. Common assets subject to Zakat include cash in bank accounts, savings, investments in stocks and bonds, retirement accounts (with specific considerations), business inventory and assets, gold and silver, and certain types of real estate investments.

Assets typically excluded from Zakat include your primary residence, personal vehicles, household items, clothing, and tools used for your profession. Business assets used directly in operations may have different treatment depending on scholarly interpretation. Some scholars also exclude certain types of retirement accounts or apply different calculation methods.

The specific treatment of each asset type can vary by scholarly opinion, so it's important to consult with qualified Islamic scholars or use resources from trusted Islamic institutions when calculating your Zakat obligation. Our calculator provides guidance, but final determination should be made in consultation with knowledgeable advisors.

How to Calculate Zakat

To calculate your Zakat, first determine if your total eligible wealth exceeds the Nisab threshold. This requires tracking your wealth over a full lunar year (Hawl). If your wealth has been above Nisab for the entire year, you calculate 2.5% of your eligible assets as of your Zakat due date.

For each asset type, determine its current value and whether it's been in your possession for a full year. Cash and bank accounts are typically straightforward—calculate 2.5% of the balance if it's been above Nisab for a year. Investments like stocks are valued at their current market price, and you pay Zakat on the total value if held for a year.

Retirement accounts like 401(k)s and IRAs require special consideration. Some scholars calculate Zakat on the current value, while others may use different methods. Business assets are typically valued at their current market worth, and inventory is included at cost or market value depending on scholarly opinion. Always verify the specific calculation method with qualified Islamic scholars.

Frequently Asked Questions