Every year, millions of people sit down to work out their zakat — and many get stuck on the same two questions: do I even owe zakat this year? and on exactly which of my things do I pay it?
This guide covers nisab, which assets count, and worked examples for cash, gold, and stocks — so you can finish the whole calculation in about ten minutes.
Zakat is only due if your zakatable wealth reaches nisab — a minimum threshold set by Islamic tradition. Think of it as the line between “comfortable enough to give” and “not yet.” There are two ways to measure it:
That is a big gap — and it matters. The majority of scholars recommend using the silver nisab (the lower one), because it means more people qualify to give, and more people in need receive. It also means: if your total zakatable wealth is above roughly $1,190 and has been for a full lunar year (this is called the hawl), zakat is due.
Silver prices move, so this number moves too. Check the current silver price when you calculate — multiply 612.36 grams by today’s per-gram price, and that is your nisab for this year.
Zakat is calculated on wealth you own and hold — not on everything you own. Here is the honest split:
Then subtract what you owe: immediate debts, upcoming loan payments, and bills due. What is left is your net zakatable wealth.
Zakat = (total zakatable assets − immediate debts) ÷ 40
That is the whole formula. Dividing by 40 is the laziest accurate way to take 2.5% — same answer, less button-mashing.
Sarah has $8,000 in savings and $2,000 in checking. She owes $1,500 on a credit card.
Ahmed owns 100 grams of gold jewelry, worth about $13,300 at current prices. He has no debts.
Honest caveat: some scholars (the Hanafi school notably) say personal jewelry you wear regularly is exempt; others say it counts. If this is you, this is worth one conversation with a scholar — it changes the number by hundreds of dollars.
Fatima’s brokerage account holds $25,000 in stocks and ETFs, plus $800 in cash from dividends sitting in the account.
She pays on the full market value. For most long-term investors, that is the practical answer — no need to separate each company’s assets.
If $10,000 is your net zakatable wealth (after subtracting immediate debts) and it has been above nisab for a full lunar year, you pay 2.5% — that is $250. Our free zakat calculator does this math for you.
Scholars differ. The Hanafi school generally exempts personal jewelry worn regularly, while other schools include it. Because this can change your zakat by hundreds of dollars, ask a scholar you trust about your specific situation.
On regular taxable brokerage accounts: yes, on the current market value. On retirement accounts like a 401(k) or IRA, opinions vary — some scholars say pay on the accessible (vested, withdrawable) portion, others say wait until withdrawal. A common practical approach is to pay on the vested balance minus expected penalties and taxes.
Zakat is due once your wealth has stayed above nisab for one lunar year (hawl). Many people pick a fixed date — often during Ramadan — and pay annually from that date. Paying early is fine; delaying without reason is discouraged.
Then no zakat is due this year — even if it was due last year. Nisab is checked fresh each year. And voluntary charity (sadaqah) is always open, at any amount.
Enter your cash, gold, silver, and investments — our free zakat calculator applies the nisab and the 2.5% rule for you. No signup, everything runs in your browser.
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