Zakat is an annual obligation on Muslims whose wealth is above a minimum threshold (the nisab) for a full lunar year (the hawl). The usual rate is 2.5% of zakatable wealth. The calculation is simple once you list everything in one place.
Step 1: Choose your zakat date
Pick a fixed date each lunar year (many people choose a date in Ramadan) and value everything on that date.
Step 2: Check the nisab
The nisab is commonly based on 85 grams of gold or 595 grams of silver, at that day's market price. Many people use the gold nisab; using silver gives a lower threshold. If your net zakatable wealth is below the nisab, no zakat is due.
Step 3: Add up zakatable assets
- Cash at home and in bank accounts
- Gold and silver: jewellery (views differ on jewellery that is worn regularly), coins and bars, valued by weight and purity
- Shares and funds held for trading at market value; for long-term holdings, scholars differ on the method
- Money owed to you that you expect to be repaid
- Business stock at its current value, plus business cash and receivables
Step 4: Deduct what you owe now
Deduct debts and bills that are due now, such as this month's rent or a supplier invoice. Scholars differ on how to treat long-term debts like mortgages; a common approach deducts only the instalments currently due.
Step 5: Apply 2.5%
Zakat = (zakatable assets − deductions) × 2.5%. Example: AED 120,000 net zakatable wealth × 2.5% = AED 3,000.
Keep a record
Track what you pay and to whom, and carry the figures forward to next year. Our Zakat Calculator totals everything, checks the nisab and works out the amount, and a charity tracker records each payment.
Do it in minutes: download the Zakat Calculator (instant download, works in Excel and Google Sheets). Need the related files too? Browse personal finance templates or get 25 business templates for AED 29 in our value packs.
This guide explains a common method. Schools of thought differ on some assets, so consult a qualified scholar or your local zakat authority for your situation.