What is Zakat?
Zakat is the third pillar of Islam — an obligatory annual payment of 2.5% on qualifying wealth held for one full lunar year (hawl) above the nisab threshold. It is not a tax or voluntary charity but a right of the poor over the wealth of the rich, prescribed in the Quran. Zakat purifies wealth, reduces inequality, and strengthens the Muslim community. It is distributed to eight categories of recipients defined in Surah At-Tawbah (9:60), including the poor, the indebted, and those working to collect and distribute Zakat.
Understanding the Nisab
The nisab is the minimum threshold of wealth above which Zakat becomes obligatory. It is set at the value of 85 grams of gold or 595 grams of silver. Since silver prices are lower, the silver nisab results in a lower threshold, meaning more people qualify to pay Zakat and more recipients benefit. Many contemporary scholars recommend using the silver nisab for this reason. The calculator lets you choose which nisab to apply and adjusts automatically based on current precious metal prices.
Which Assets Are Zakatable?
Zakatable assets include: cash and money in bank accounts, gold and silver jewellery and bullion (above personal use amounts), business inventory and stock held for sale at market value, shares in companies valued at the underlying assets of the business, money owed to you that you reasonably expect to recover, and agricultural produce and livestock at specific rates. Non-zakatable assets include your primary home, personal vehicle, clothing, household furniture, and tools of your trade.
When and How to Pay Zakat
Zakat becomes due once a full lunar year has passed with your wealth consistently above the nisab. Most Muslims choose a fixed date — such as the beginning of Ramadan — to calculate and pay Zakat each year. It should be paid promptly once due; delaying without valid reason is sinful. Zakat can be paid to qualified recipients directly or through a reputable Islamic charity that distributes it according to Shariah. If you are uncertain about any aspect of your Zakat calculation, consult a qualified Islamic scholar.