How to Calculate Your Personal Zakat

Co-authored by wikiHow Staff | Reader-Approved

Updated: February 19, 2020 | Reader-Approved

Zakat is one of the pillars of the Islamic faith. It means you donate some of your personal wealth to those in need. Zakat purifies your spirit and brings you closer to Allah, or God. Learn how to calculate your personal zakat so you can fulfill your spiritual duties.[1]

Part 1 of 3:
Determining the Threshold

  1. 1
    Calculate the nisab. Nisab is the threshold or cut-off amount. If your personal wealth, or what you own, is more than the nisab, you owe zakat. If your personal wealth is below the nisab, you don't owe zakat. You use either the current market price of gold or silver to calculate nisab. Always check current market rates, as gold and silver prices fluctuate.[2]
    • Choose either the gold or silver rate, not both. The nisab is the cash equivalent of 3 ounces/87.48 grams of gold or 21 ounces/612.36 grams of silver.[3].
    • For example, if each ounce of silver is currently worth $15, the nisab using the silver calculation is $315 ($15 X 21 ounces = $315). If your personal wealth is above $315, you owe zakat.[4]
  2. 2
    Determine your cycle dates. Zakat is an annual duty. It's due one lunar year, or hijiri, from the first day you exceeded the nisab threshold or from the day you last paid zakat. For western, Gregorian and Hijri Date conversations, check out: IslamicFinder Hijri and Gregorian Calendar Date Conversions
    • If you know your personal wealth is always above zakat, select any date during the year to pay. Keep track of the date so you remember when it's due the next year.
    • Many people choose Ramadan as the month they pay zakat. Ramadan is one of the five pillars of Islam. It's a sacred time when Muslims read the Koran and fast from dawn to dusk. Paying zakat is another way to cleanse the soul during this holy period.[5]
  3. 3
    Base your calculations on silver. Silver has a lower price than gold. Using silver for the nisab means you're more likely to exceed the threshold. You'll be able to meet your spiritual and moral duty to provide for those who are less fortunate.
    • For example, if each gram of silver is worth $0.66, the nisab using the silver calculation is $404.15 (612.35 grams X $0.66 = $404.15). More people would exceed this threshold rather than the gold threshold.
  4. 4
    Know the difference between zakat and tax. Zakat is not a tax. It's a spiritual act to help relieve people's suffering. Some people believe that in many countries, paying zakat is voluntary whereas paying taxes is mandatory. However, this is incorrect. Zakat is one of the 5 pillars of Islam, and therefore, it is an absolute must on every Muslim who is able to pay it. It is attributed to the universal religion of Islam, and therefore has nothing to do with the law of the land. Zakat directly helps the poor and needy.[6]
    • Zakat teaches you self-discipline. It helps you focus on helping others rather than on your own possessions and needs. It helps you be a better Muslim and brings you closer to Allah.

Part 2 of 3:
Determining Your Wealth

  1. 1
    Identify your assets. Start calculating your assets, or what you own. This is the first step is figuring out how much zakat you'll pay. You exclude the assets you use for everyday life. For example, your primary residence, car, clothes and business equipment are not used in your zakat asset calculations. It's based on what's left after you take care of you and your family's living expenses. [7]
    • Some examples of zakat-eligible assets include stocks, savings, investment properties, cash, business income or precious metals such as gold.
    • Determine how much your zakat-eligible assets are worth for the year.
  2. 2
    Identify your liabilities. Debt from credit cards, college or other loans subtracts from your personal net worth. These outstanding debts are deducted from your total zakat-eligible assets.
    • If you obtained a personal loan of any type (car, home, cash), then look at how much you pay per month to your creditors, not the entire outstanding debt.
    • Add up how much you owe each month to your creditors. Multiple this amount by 12 to calculate your annual liability amount.
  3. 3
    Determine your zakat net worth. Subtract your liabilities from your zakat-eligible assets. For example, your assets for the year total $6,000 and your liabilities total $2,000. Your zakat net worth or zakat pool of money is $4,000 ($6,000 - $2,000 = $4,000).

Part 3 of 3:
Calculating Your Zakat

  1. 1
    Compare the nisab with your zakat net worth or pool. If your zakat net worth is more than the nisab, you owe zakat. If it's less, you don't owe this year.
    • For example, your zakat net worth is $4,000. Each ounce of silver is currently worth $15, so the nisab using the silver calculation is $315 ($15 X 21 ounces = $315). You have more than the nisab so you owe zakat.
  2. 2
    Give a percentage of your zakat net worth. If you're over the nisab threshold, give a minimum of 2.5% of your zakat net worth. Give more than 2.5% if you're financially able.[8]
    • For example, if your net worth is $4,000, you'll give $100 for zakat ($4,000 X .025 = $100). However, give more if you're financially able.
    • The calculation is slightly higher if you're using a western, Gregorian calendar vs. the lunar Hijri calendar. If you're following the western calendar cycle use 2.557% of your net worth. If you're following the Hijri calendar, use 2.5% of your net worth.
  3. 3
    Donate to reputable faith-based charities. To ensure your zakat is going to fellow Muslims in need, donate to a recognized and registered non-profit charity. Ask your local faith community for recommendations. Ask the charity how much of the zakat donations reach people in need, and what the charity's process is for distributing funds.[9]

Community Q&A

Add New Question
  • Question
    How do I calculate my personal zakat if I am a widow with no children or home of my own?
    Community Answer
    I believe you would do it the same way shown here, only counting what you actually own. If you have no home, though, I believe that it's highly likely that you wouldn't owe zakat.
  • Question
    Can I subtract the mortgage amount on my residential property from the income?
    Community Answer
    Yes, but not the whole mortgage. For example, if you owe the bank $1,000,000, you wouldn't subtract the entire million; you would subtract what you owe that year (essentially the mortgage payments of that year). Some scholars debated about this issue but the this is the most common (and logical) fatwa. Although you owe the bank $1M, you don't plan to pay it back within a year (most likely over 30 years), so you can't be zakat-free for 30 years.
  • Question
    Do I have to pay Zakat if I owe money to people and have not paid yet?
    Community Answer
    No, first you have to pay what you owe to people. After that you can focus on paying Zakat.
  • Question
    I have rental property. If I calculate zakat on the value of the property, I don't have the cash to pay. Do I borrow money from the bank to pay or is there something else I can do?
    Community Answer
    If this is a rental property, meaning you don't plan to flip and sell it, for instance, you do not pay zakat on the value of the property, but you pay zakat on the rent you receive from the property. For instance, if your zakat day arrived and you had collected 4 months rent from a tenant, then you pay zakat on the sum of 4-month rent (as well as zaka on your other money).
  • Question
    Do I have to pay zakat on the same asset every year?
    Community Answer
    Yes. Zakat is on unused wealth/property of 1 year. If that luxury/property/wealth has remained in your possession and unused then it remains subject to zakat year after year.
  • Question
    How can I know how much cash I have in a bank?
    Community Answer
    Check your bank statements for all the accounts you have. These days each bank has a mobile app which can tell you your balance as well.
  • Question
    If I own a house and make it a rental, how do I calculate my zakat?
    Community Answer
    At that point the house would no longer be "unused wealth," so it wouldn't be Zakat-able anymore. However the income it generated that sits for a year would be.
  • Question
    How do I apply Zakat for rental property?
    Community Answer
    Determine your net equity in the property. This would mean that you take the market value (not the price you paid when you bought it, but how much similar properties are going for in the market, or if you were to list it for sale, how much you would list it for) and subtract the mortgage (if any) from that. That's your equity in the property, what you actually own. You should then apply your Zakat percentage to that. Allah knows best.
  • Question
    If a person is giving zakat for the second year, are net assets calculated by combining years one and two, or just year two's assets?
    Community Answer
    Every Hijri (lunar) year zakat will be mandatory for those who comes in the mentioned condition in islam. If you have nisab threshold then you have to calculate worth of all of your savings, jewellery and investments. The 2.5% of total worth is your zakat for that year.
  • Question
    If I owe someone should I first pay then pay Zakat?
    Community Answer
    If you owe someone money then that will be seen as a liability. You would subtract your liabilities from your assets to determine the amount that you have to pay zakat on.
Show more answers
Unanswered Questions
  • How do I determine what to pay on zakat for jewelry?
  • For my current Zakat, will I be calculating my assets between August 2018 and July 2019?
  • What if a person holds an unusable piece of land which does have a certain market value but they can't sell it either when calculating Zakat?
  • Do I have to pay Zakat on money I'm saving for a business?
  • How do I calculate my Zakat if I have a lot of money?
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      • The value of a car or a home that you rent out to others is also not considered. However, the income generated by any investment is considered.
      • Your personal home and car are not considered.
      • Any income generated from non shariah compliant source, i.e. interest of bonds, is not considered. However, the value of any conventional financial obligation is considered.


      About This Article

      Co-Authored By:
      wikiHow Staff Editor
      27 votes - 84%
      Co-authors: 23
      Updated: February 19, 2020
      Views: 480,623
      Categories: Managing Your Money
      Article SummaryX

      Before you calculate your personal zakat, make sure to calculate nisab to see what the threshold is. Once you have a value for nisab, identify your zakat-assets, like your annual income, stocks, and savings and then subtract your zakat liabilities, such as any debt you have. If the balance is less than nisab, then you owe nothing. If your zakat is more than nisab, use current gold or silver calculators to see how much you owe, keeping in mind you can always give more if you are able. For more on calculating the nisab, keep reading.

      Did this summary help you?

      Thanks to all authors for creating a page that has been read 480,623 times.

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        Shaikh Moizul Matin

        Dec 28, 2017

        "I remember how my father and other elders of the family used to calculate Zakat amount same way. You have explained clearly the same process."..." more
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        Jun 29, 2018

        "It is good to help get zakat calculated. Moreover, it helps to give your charity to your nearest relationship without disclosing zakat."..." more
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