Zakat Calculator

Zakat is one of the five pillars of Islam: an annual obligation for eligible Muslims to give a portion of their wealth to those in need. Working out the right amount can feel complicated, especially with modern assets like pensions, shares and savings accounts.

This guide explains the main principles of calculating zakat in a UK context. To work out your own figure, use the zakat calculator. For questions about your personal circumstances, speak to a qualified scholar or a trusted zakat organisation.

What is zakat?

Zakat means "purification" and "growth". It's paid on wealth that has been held for a full lunar year and is above a minimum threshold, called the nisab. The standard rate is 2.5% of your total zakatable wealth.

Who has to pay zakat?

Zakat is due from adult Muslims of sound mind whose net zakatable wealth has been at or above the nisab for one full lunar year, known as the hawl. Many people choose a fixed date each year, such as a date in Ramadan, to calculate and pay their zakat.

The nisab

The nisab is the minimum amount of wealth you must have before zakat is due. It's based on the value of:

• 87.48 grams of gold, or
• 612.36 grams of silver

Because silver is much cheaper than gold, the silver nisab is far lower. Many scholars and UK zakat organisations recommend using the silver nisab for cash and mixed assets, as it means more people pay zakat and more people in need benefit. Others use gold. The zakat calculator lets you choose either.

Gold and silver prices change every day, so check the current price per gram before you calculate.

What counts as zakatable wealth?

Generally, zakat is due on wealth that is held as savings or with the potential to grow. This typically includes:

• Cash at home and in bank accounts, including savings accounts
• Gold and silver, including jewellery according to many scholars
• Shares and investments, with different approaches depending on whether you hold them for trading or long term
• Business assets, such as stock for sale and business cash
• Money owed to you that you expect to be repaid
• Rental income you've saved, though usually not the property itself

What's usually exempt

Zakat isn't usually due on personal items you use, such as your home, car, clothing and furniture, or on property you live in.

Pensions

Scholars differ on pensions. Some say zakat is due on the portion you could access, others only once you can withdraw it. A zakat organisation can explain the main views.

Deducting debts

You can usually deduct debts that are due now, such as bills, money owed to friends and the payments due on loans in the coming period. With long-term debts like mortgages, the common approach is to deduct only the repayments that are currently due, not the whole outstanding balance.

A worked example

Fatima has £6,000 in savings and £4,000 in investments, and £500 of bills due. She uses the silver nisab, with silver at £1.15 per gram.

• Zakatable assets: £6,000 + £4,000 = £10,000
• Less debts due now: £500
• Net zakatable wealth: £9,500
• Silver nisab: 612.36 × £1.15 = about £704
• Her wealth is above the nisab, so zakat is due: £9,500 × 2.5% = £237.50

You can enter your own figures in the zakat calculator.

Who receives zakat?

The Quran sets out eight categories of people who can receive zakat, including those in poverty, those in need, people in debt and travellers in difficulty. In the UK, many people pay through registered charities and zakat organisations, which distribute it to eligible recipients locally or overseas.

Tips for calculating zakat each year

1. Pick a consistent date each year.
2. List all your zakatable assets on that date.
3. Deduct debts that are due now.
4. Compare the total with the current nisab.
5. If you're above the nisab, pay 2.5%.
6. Keep a note of your calculation for next year.

Keeping records

Keeping a simple record of your zakat calculation each year makes the next year much easier. Note the date, the value of each type of asset, the debts you deducted, the nisab you used and the amount you paid. If you hold shares, investments or business assets, keeping statements from your zakat date will help you value them consistently. Records are also useful if you want to check your approach with a scholar or adviser.

If you've missed paying zakat in previous years, many scholars advise working out what would have been due and paying it as soon as you can. A zakat organisation can help you estimate past years if your records are incomplete.