ZAKAT Calculator

Simple step-by-step guide to calculating Zakat

1. Determine If You Qualify for Zakat

• You must own wealth above the Nisab threshold for one lunar year.

• Nisab is the minimum amount of wealth you must have before Zakat is due. It is based on:

  • 85 grams of gold (~$5,600 as of recent estimates) OR

  • 595 grams of silver (~$500 as of recent estimates).

Most scholars recommend using silver for a cautious approach, as it benefits more people in need.

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Also, based on ADAMS Center estimates, the Nisab to be $3,913 as of March 3, 2025, based on the value of 85 grams of gold.

2. Identify Zakatable Assets

Zakat is 2.5% (1/40th) of your total eligible wealth, which includes:
✅ Cash (in hand, bank, investments, crypto)
✅ Gold & silver (jewelry, bullion)
✅ Business inventory (goods for sale)
✅ Investment profits (stocks, rental income)
✅ Savings & retirement funds (401k, IRA – only the accessible portion)

Non-Zakatable Assets:

•  Personal items (home, car, furniture, clothes)

•  Business property & tools (if not for sale)

•  Debts you owe to others

3. Subtract Liabilities

Deduct short-term debts (e.g., credit card bills, rent, loans due soon).

4. Calculate & Pay 2.5%

Zakat = (Total Zakatable Wealth – Liabilities) × 2.5%
Example:
If you have $10,000 in savings and investments, with no debts:
$10,000 × 2.5% = $250 Zakat due

5. Distribute to Eligible Recipients

Distribute Zakat to one of the 8 categories mentioned in the Quran (Surah At-Tawbah 9:60), including:

• The poor & needy

• Those in debt

• New Muslims

• Humanitarian causes

You can give through trusted charities or directly to individuals in need.