Zakat Guide
Simple, practical rules for what to count, subtract, and adjust.
- Zakat is 2.5% of net zakatable wealth.
- It is due if you stay above the nisab for one lunar year.
- The calculator shows its default methods under Nisab & Rules. Change them if you follow a different view.
What to count
Include wealth you can access or trade into cash.
- Cash, bank balances, and stored-value wallets (PayPal, Wise, etc.).
- Gold and silver (jewelry, coins, bullion). Use karat to calculate pure metal; the jewelry toggle reflects common differences.
- Stocks, funds, and crypto held as investments (see Settings & opinions for methods).
- Receivables likely to be paid and business inventory at sale value; exclude tools and fixed assets.
- Loans you have made remain part of your wealth. Include amounts that you expect to recover under the method you follow.
- Property: holdings for resale are zakatable at market value; rental property is not, but saved rent is.
Show examples
- $500 cash + $2,000 bank + $300 PayPal = $2,800.
- 40g of 18K jewelry counts as 30g of pure gold (40 x 0.75).
- $8,000 inventory + $3,000 receivables likely to be paid = $11,000.
What to subtract
Subtract liabilities that are due and payable within the year.
- Short-term bills, credit balances, and near-term business payables.
- One common method deducts short-term debts and the next-year installment on long-term loans, not the full balance.
- Debts tied to non-zakatable assets may not be fully deductible. Why?
A long-term debt attached to a non-zakatable personal asset is not always fully deductible. The calculator lets you choose current liabilities or the next-year portion.
Show examples
- $1,200 credit card + $6,000 next-year student loan payments = $7,200 deductible.
- A $200,000 mortgage balance is not fully deductible; only the next-year portion if you use that method.
Settings & opinions
Some areas have valid differences. Choose a method you trust and stay consistent.
- Nisab: choose gold or silver, then pick Standard or Conservative thresholds.
- Gold and silver purity: use karat to calculate pure metal; personal jewelry can be included or excluded.
- Stocks and funds are often zakatable at market value; some scholars use only the underlying zakatable portion.
- Retirement accounts (401k, IRA, pensions) have multiple methods. Enter the value produced by the method you follow.
- One method uses the accessible amount after estimated taxes and penalties. Other methods assess the underlying assets.
Show examples
- You pick silver nisab this year; use the same basis next year unless you intentionally change.
- 401k with $20k vested and $3k in penalties/taxes -> $17k zakatable using the simple default.
What is not included
You do not pay Zakat on day-to-day life essentials.
- Primary home, personal car, and household items.
- Clothing and personal tools not held for sale.
- Fixed business equipment used for operations.
Default assumptions in 2Point5
These are defaults only. You can change them in settings.
- Nisab basis: gold by default; you can switch to silver.
- Gold jewelry: included by default; you can toggle personal jewelry.
- Debts: current liabilities by default; you can switch to next-year installments.
Note on differences of opinion
Zakat rulings can vary by madhhab and local guidance.
- This page is educational and not a fatwa.
- Consult a qualified scholar for unique circumstances.