How zakat is calculated
Worked example
Cash AED 40,000, gold 50 g at AED 450/g (AED 22,500), shares AED 15,000, credit card AED 5,000. Net wealth = 40,000 + 22,500 + 15,000 − 5,000 = AED 72,500. Silver nisab at AED 5/g = AED 2,975, so zakat is due: 72,500 × 2.5% = AED 1,812.50.
Tips
- Use the lunar year: 2.5% applies to a hawl of 354 days. If you calculate on a solar-year date every year, some scholars suggest 2.577% to compensate.
- Shares held long-term: many scholars allow paying on the zakatable net assets of the company (often 25–40% of market value) rather than the full price. Shares for trading: full market value.
- Keep a record of your zakat date and the figures used each year.
Frequently asked questions
How much is zakat?
2.5% of your net zakatable wealth (assets minus short-term liabilities), payable once a lunar year if the net amount has been at or above the nisab threshold for a full year (hawl).
What is the nisab?
The minimum wealth at which zakat becomes due: 87.48 g of gold (commonly rounded to 85 g) or 612.36 g of silver (commonly 595 g). Enter today's gold or silver price per gram to see the threshold in your currency. Most scholars recommend the silver nisab because it is lower and benefits more recipients; Hanafi practice favours silver, many others use gold.
Which assets are zakatable?
Cash and bank balances, gold and silver (jewellery included according to Hanafi opinion), shares and funds (full market value if held for trading; otherwise the zakatable portion of the underlying assets, often approximated as 25–40%), business stock and trade receivables, money lent to others that you expect back, and pension or investment savings you can access.
What is not zakatable?
Your home, car, furniture, personal belongings, tools of your trade, and property or land held for personal use. Rental property itself is not zakatable, but rental income you have saved is.
Can I deduct debts?
Yes — debts due within the coming year (credit cards, bills, the next 12 months of instalments on a loan) are deducted. Long-term mortgage balances beyond the next year are generally not deducted in contemporary rulings.
Do I pay zakat on gold jewellery?
According to the Hanafi school, yes, on all gold and silver jewellery regardless of use. The Maliki, Shafi'i and Hanbali schools exempt jewellery in regular personal use. This calculator includes it; set grams to 0 if you follow an exempting opinion.
When should I pay zakat?
On the anniversary of the date your wealth first reached the nisab (your zakat date). Many people choose Ramadan for the extra reward, which is permissible as long as the lunar year is respected.
Is zakat due on my end-of-service gratuity or pension?
Gratuity is zakatable once received and held for a year. For pensions, the majority view is that zakat is due on amounts you can access; some scholars say to pay when the pension is received.