π Zakat Calculator
Purify your wealth: 2.5% of qualifying assets.
Zakat due
Estimates for planning only, not financial advice.
Cash $20,000, gold $15,000, investments $30,000, debts $5,000: zakatable wealth is $60,000 and Zakat due is $1,500. That is 2.5 percent, one-fortieth, of net qualifying wealth held for a lunar year above the nisab threshold. Simple arithmetic; profound obligation.
How to Use This Calculator
Enter the market value of cash, gold and jewelry, and investments, then subtract debts you owe. The calculator applies 2.5 percent to the net.
Total cash, bank balances, and money owed to you that you expect to receive.
Value gold and silver at current market prices, not purchase price.
Subtract immediate debts. Pay Zakat only if the remainder exceeds nisab.
The Rules
Zakat is due on wealth held for a full lunar year (hawl) above nisab, the minimum threshold. Most scholars set nisab by gold (~$7,000-$8,000 at recent prices) or silver (~$600-$800); the silver standard obligates more people and many scholars prefer it for that reason. Personal-use items (your home, car, clothing) are exempt; business inventory and rental properties' income are included by most schools.
Worked Example
Cash $20,000 + gold $15,000 + stocks $30,000 = $65,000 gross. Debts $5,000. Net: $60,000. Zakat: 60,000 x 0.025 = $1,500. Check nisab: $60,000 exceeds both gold and silver nisab comfortably, and if held a lunar year, the $1,500 is due. Paid to eligible recipients (the poor, the needy, and the other Quranic categories), preferably promptly after your Zakat anniversary.
What Counts
| Zakatable | Not zakatable |
|---|---|
| Cash, bank accounts | Primary home |
| Gold, silver, jewelry | Personal car, clothing |
| Stocks, mutual funds | Tools of your trade* |
| Business inventory | Debts owed (subtracted) |
| Rental income received | Pension not yet accessible* |
Starred items vary by school of thought; when in doubt, consult a knowledgeable scholar. Retirement accounts are the modern puzzle: many scholars say pay on the accessible value yearly, others say pay on withdrawal. Pick a consistent position and document it.
Timing and Intention
Choose a Zakat anniversary (many use Ramadan for the multiplied reward, though any date works) and value everything that day. Market prices move: gold's value on your anniversary is what counts, not what you paid. You may pay in advance or in installments through the year as long as the total is settled. Keep a simple ledger: anniversary date, asset values, debts, amount paid, recipients. The arithmetic is easy; the discipline is the worship.
Zakat on Stocks, Crypto, and Retirement Accounts
Classical rules meet modern portfolios more smoothly than expected. Stocks held for trading are zakatable at market value each lunar year; long-term holdings in dividend companies are debated, with many scholars permitting zakat on dividends only or on a portion of value. Mutual funds and ETFs: look through to the underlying assets, though in practice most pay on the full market value for simplicity. Crypto is treated as a tradable asset by most contemporary scholars: value it at market price on your zakat date, 2.5 percent, same as cash.
Retirement accounts split scholars. The cautious view: 401(k)s and IRAs are zakatable on their vested balance yearly, since you own the assets despite withdrawal penalties. The lenient view: pay upon withdrawal, since access is restricted. Many American Muslims follow the yearly-valuation approach for Roth accounts (already-taxed money, full ownership) and either approach for traditional accounts; pick a qualified scholar's guidance and stay consistent rather than shopping for the lowest number.
Debts and expenses adjust the base. Immediate debts (due within the year) are deductible from zakatable assets; long-term debts like mortgages are debated, with most scholars allowing only the upcoming year's payments as deduction. Living expenses for the month are not deducted as a lump from the base; the nisab test already handles subsistence. Business inventory is zakatable at wholesale value, and receivables count if you expect to collect them. When in doubt between two valuations, the higher one protects the obligation; zakat purifies wealth, and overpaying slightly errs on the safe side.
Purify It, Pay It, Move On
Zakat is 2.5 percent of qualifying wealth held a lunar year above nisab: simple in principle, detailed in application. Total your cash, investments, and business assets at market value, subtract immediate debts, and pay promptly once due. For modern assets, follow qualified scholarship and stay consistent year to year. Calculated and paid, it does what it is meant to do: purify the wealth and circulate it.
Calculate, Purify, Distribute
Set a zakat date on the lunar calendar, value everything at market price that day, subtract immediate debts, and pay 2.5 percent promptly to eligible recipients. Keep a simple spreadsheet year to year; consistency matters more than perfection, and qualified scholarship covers the gray areas. Zakat is both worship and wealth circulation: calculated carefully, it purifies your assets and puts them to work for others.
Estimates for planning only, not financial advice.
Frequently Asked Questions
How do you calculate Zakat?
Add cash, gold/silver at market value, stocks, business inventory, and money owed to you; subtract debts; multiply by 2.5%. With $65,000 assets and $5,000 debts: $60,000 x 0.025 = $1,500. Wealth must exceed nisab for a lunar year. Value everything at market price on your zakat anniversary date, not purchase price: unrealized gains count, since the wealth exists regardless of whether you sell.
What is the nisab for Zakat in 2026?
87.48 grams of gold or 612.36 grams of silver. At recent prices that is roughly $7,000-$8,000 (gold standard) or $600-$800 (silver standard). Many scholars recommend the silver nisab as more cautious. Check current metal prices on your anniversary. The large gap between the two standards means the choice determines whether you owe zakat at all; when uncertain, the silver standard errs on the side of fulfilling the obligation.
Is Zakat 2.5% of income or wealth?
Wealth: 2.5% of qualifying assets held for a lunar year, not of annual income. Income that is spent does not accumulate Zakat; savings and investments that persist do. This is a common confusion. A high earner who spends everything owes nothing, while a modest saver who accumulates steadily owes zakat yearly: the obligation targets stored wealth, not earnings flow.
Do I pay Zakat on my 401(k)?
Scholars differ: many say pay yearly on the vested accessible value (some allow deducting expected taxes/penalties), others say pay when withdrawn. Choose a scholarly position and apply it consistently each year. The yearly approach treats retirement accounts like any investment portfolio; the withdrawal approach treats the tax and penalty barrier as restricting ownership. Either is defensible with qualified guidance.
Is Zakat due on gold jewelry I wear?
It depends on the school: Hanafis generally say yes on all gold above nisab; Malikis, Shafi'is, and Hanbalis generally exempt personal-use jewelry. Know your school's position or ask a scholar you trust. The Hanafi view treats gold as wealth regardless of use; the majority view distinguishes personal adornment from stored value. Converts and the undecided typically follow the scholar they learn from.
Do debts reduce Zakat?
Immediate, due debts are subtracted from zakatable assets by most scholars. Long-term debts (like a 30-year mortgage): most allow deducting only the upcoming year's payments, not the whole balance. Deducting an entire 30-year mortgage would wipe out zakat for most homeowners, which scholars reject as defeating the obligation's purpose; the year's-payments approach balances realism with duty.
When do I pay Zakat?
After one lunar year (hawl) passes with wealth above nisab, on your chosen anniversary. Many choose Ramadan for extra reward. Advance payment and installments through the year are permitted. If you pay in installments, track the total against the computed obligation so the year's zakat is fully discharged by the anniversary; shortfalls discovered later should be made up promptly.
Who can receive Zakat?
The eight Quranic categories (9:60), primarily the poor and needy. It cannot be given to parents, children, or spouses (their support is your duty), nor to the wealthy, nor used for mosque construction by most scholars. It can go to siblings, in-laws, and other relatives in need, where it carries double reward as charity plus maintaining family ties; verify recipients' eligibility when giving through organizations.
Is Zakat tax deductible in the US?
Zakat given to qualified 501(c)(3) charities is deductible as a charitable contribution if you itemize, like any donation. Direct gifts to individuals are not deductible. Keep receipts from charitable organizations. Since the 2017 tax changes raised the standard deduction, fewer filers itemize; bunching several years of charitable giving (including zakat) into one year can push you over the itemizing threshold.
What if my wealth dips below nisab mid-year?
By most schools the hawl breaks and restarts when wealth exceeds nisab again. Brief dips are treated differently across schools; if it happens, note the dates and consult a scholar for your situation. Some scholars disregard momentary dips (a large bill paid just before the anniversary) while others apply the rule strictly; keeping dated records of your balances lets a scholar give you a precise ruling.