How is zakat on wealth calculated?
Zakat is due on wealth you have owned for a full Hijri (lunar) year, once it reaches the minimum amount called the nisab. The rate is 2.5%, which is one fortieth. The calculation has four steps:
- Add up your zakatable wealth: cash and savings, gold and silver, shares, goods for sale and money owed to you that you expect to get back.
- Take away debts you must pay now.
- Compare the result with the nisab: the value of 85 grams of pure gold, or of 595 grams of silver.
- If it reaches the nisab, the zakat is 2.5% of it. If not, no zakat is due.
Gold nisab or silver nisab?
Both come from the hadith: 20 mithqal of gold (about 85 grams) and 200 dirhams of silver (about 595 grams). Silver is much cheaper, so the silver nisab is far lower and more people have to pay. Many scholars say the gold nisab fits money today; others prefer the silver nisab because it is better for the poor. If you are unsure, ask a scholar you trust.
What is included, and what is not?
| Wealth | Zakat? |
|---|---|
| Cash, bank accounts and savings, in any currency | Yes |
| Gold and silver bars, coins and jewellery kept as savings | Yes |
| Shares and funds held to trade | Yes, at today’s market value |
| Goods held for sale in a business | Yes, at today’s selling value |
| Loans you expect to get back | Yes |
| Your home, car, furniture and personal belongings | No |
| Jewellery a woman wears regularly | Scholars differ |
Worked examples
Savings of 100,000 SAR, gold at 400 SAR per gram
Gold nisab: 85 × 400 = 34,000 SAR. Your savings are above it, so the zakat is 100,000 × 2.5% = 2,500 SAR.
50,000 SAR in the bank, 100 grams of 21k gold, 10,000 SAR of debts due
21k gold is 21/24 pure, so 100 g holds 87.5 g of pure gold, worth 87.5 × 400 = 35,000 SAR. Total: 85,000 SAR, minus 10,000 debts = 75,000 SAR. The zakat is 1,875 SAR.
Savings of 30,000 SAR
With gold at 400 SAR per gram, this is below the gold nisab of 34,000 SAR, so no zakat is due. With silver at 4 SAR per gram, the silver nisab is 595 × 4 = 2,380 SAR, so under the silver view the zakat is 750 SAR.
Frequently asked questions
When do I pay zakat?
When a full Hijri year has passed since your wealth first reached the nisab. Many people choose a fixed date, such as Ramadan, and calculate everything they own on that day each year.
Is there zakat on the jewellery I wear?
Scholars differ. Most of the Maliki, Shafi‘i and Hanbali schools say jewellery worn regularly is not zakatable, while the Hanafi school and some contemporary scholars, including Saudi Arabia’s Permanent Committee, say it is. Gold kept as savings is zakatable in every view.
Do I pay zakat on my salary each month?
No. Zakat is on what you have saved. Money you spend during the year is not counted; what remains in your account on your zakat date is.
Can I subtract my loans?
Many scholars allow you to take away debts you must pay now. For long-term loans such as a car or home loan, only the instalments that are due are usually taken away, not the whole loan.
Can I pay my zakat to my family back home?
You can pay it to relatives who are poor, as long as they are not people you already have to support, such as your parents, children or wife. You can pay it in any country.
Do I pay zakat on my end-of-service gratuity before I receive it?
Many scholars say no, because you do not own it until you receive it. Once it is paid, it joins your savings.
Last reviewed: October 2026. This calculator follows common scholarly views and is meant to help you plan; it is not a fatwa. For your situation, ask a scholar you trust or an official fatwa body such as the General Presidency of Scholarly Research and Ifta.
This page was translated from Arabic. If something is unclear or wrong, please tell us.