What is zakat?
Zakat is one of the five pillars of Islam. It is a set share of a Muslim's wealth that is given each year to people who are entitled to it, such as the poor and those in need. The Arabic word carries the meaning of purification and growth.
Zakat is not the same as voluntary charity, which is called sadaqah. Sadaqah can be any amount at any time. Zakat has clear conditions: a minimum amount called the nisab, a waiting period of one lunar year, and a fixed rate. For money, gold, silver and trade goods, that rate is 2.5%, or one fortieth.
This page covers cash, savings, gold, silver, shares, money lent and business stock. It does not cover zakat on farm produce or livestock, which follow different rules.
We have tried to write this respectfully and to show where scholars hold different views. We are a calculator website, not a fatwa body. When the answer depends on a matter of fiqh, we explain the main opinions and suggest you ask a scholar you trust.
Who has to pay zakat?
Zakat is due from a Muslim who meets all of these conditions:
- They are a free, adult Muslim. Scholars differ on whether zakat is due on the wealth of a child or a person who is not of sound mind. The majority say it is due and the guardian pays it, while the Hanafi school says it is not due on that wealth.
- They fully own the wealth and can use it.
- Their zakatable wealth, after deducting short-term debts, is at or above the nisab.
- They have held at least the nisab for one full lunar year.
Nationality and residence do not matter. An Indian engineer in Abu Dhabi, a Pakistani driver in Jeddah, a Filipino Muslim nurse in Doha and an Egyptian teacher in Kuwait all follow the same basic rules. You can calculate in the currency you hold most of your savings in. The calculator above supports the six Gulf currencies plus PKR, INR and USD.
The three basic conditions: nisab, hawl and 2.5%
Nisab: the minimum amount
The nisab is the smallest amount of wealth on which zakat becomes due. Its basis is in the hadith literature, which set the nisab for gold at 20 dinars and for silver at 200 dirhams. Modern scholars converted these old coin weights into grams. The most widely quoted figures are 85 grams of gold and 595 grams of silver.
Hawl: one lunar year
Your wealth must stay at or above the nisab for one full year of the Islamic calendar. A lunar year is about 354 or 355 days, so it is around 11 days shorter than a normal calendar year. Many people pick a fixed zakat date, such as 1 Ramadan or 1 Muharram, and calculate on that day every year. You can find the right Gregorian date with our Hijri Date Converter.
A common view, held by the Hanafi school among others, is that what matters is having the nisab at the start and at the end of the year. Ups and downs in between do not reset the year, as long as your wealth does not drop to zero. Other scholars look at the lowest point during the year. This is a good question to discuss with a scholar.
The rate: 2.5%
For money, gold, silver and trade goods, the rate is 2.5%. You pay it on the whole net amount, not just the part above the nisab. So if you have AED 50,000 of net zakatable wealth and the nisab is AED 3,000, you pay 2.5% of AED 50,000, which is AED 1,250.
Gold nisab or silver nisab: which should you use?
Gold and silver were close in value when the nisab was first set. Today silver is much cheaper than gold, so the two standards give very different thresholds. With an assumed price of AED 450 per gram of gold and AED 5 per gram of silver, the gold nisab is AED 38,250 and the silver nisab is AED 2,975.
For gold you own, the gold nisab applies. For silver you own, the silver nisab applies. The real question is what to use for cash, savings and mixed wealth. There are two main views:
- Silver nisab. Many scholars and zakat organisations prefer the silver standard for cash and mixed wealth. It is the lower figure, so more people pay and more help reaches the poor. It is often described as the more cautious choice.
- Gold nisab. Other scholars prefer the gold standard. They argue that gold has kept its value better over time and that the silver figure is now so low that it may include people who are not wealthy.
Both views are held by respected scholars. The calculator lets you choose. If you are unsure, ask a scholar you trust and then use the same standard each year.
Different gram figures
You may also see slightly different weights. The figures depend on how the old dinar and dirham are converted into grams.
| Standard | Gold nisab | Silver nisab | Where you see it |
|---|---|---|---|
| Common modern figure | 85 g | 595 g | Most Gulf zakat bodies and many calculators |
| Common Hanafi figure | 87.48 g | 612.36 g | Many South Asian scholars and some newspaper guides |
This calculator uses 85 g and 595 g. The difference only matters if your wealth is very close to the nisab. If it is, ask your scholar which figure to use.
What counts as zakatable wealth
The table below gives a simple summary. Where scholars differ, we say so in the special cases section.
| Type of wealth | Zakatable? | How to value it |
|---|---|---|
| Cash at home or in your wallet | Yes | Full amount |
| Current and savings accounts | Yes | Balance on your zakat date |
| Gold and silver coins, bars, savings jewellery | Yes | Pure weight × price per gram |
| Jewellery worn for normal use | Scholars differ | See special cases |
| Shares and funds held to trade | Yes | Market value |
| Long-term shares held for dividends | Views differ | Market value, or your share of the company's zakatable assets |
| Money you lent that you expect back | Yes, in most views | Amount you expect to recover |
| Stock in a shop or business for sale | Yes | Current sale value |
| Your home, car, furniture, phone | No | Not counted |
| Business tools, machines, shop fittings | No | Not counted |
| Property bought to resell | Yes | Market value |
| Saved rent from a rental flat | Yes | Cash you still hold |
How to calculate zakat: the step-by-step formula
The calculator follows these five steps. You can also do them on paper.
Step 1: Add up your zakatable assets
Step 2: Subtract short-term debts
Step 3: Work out the nisab
Silver nisab = 595 × Silver price per gram
Step 4: Compare
If your net zakatable wealth is below the nisab, no zakat is due. If it is at or above the nisab, and you have held at least the nisab for a full lunar year, go to step 5.
Step 5: Apply 2.5%
Worked examples
The metal prices below are round numbers chosen for the examples. They are not today's market prices. Type the same figures into the calculator and you will get the same answers.
Example 1: Salaried worker in Dubai (gold nisab)
Ahmed has AED 5,000 in cash, AED 60,000 in his bank account and AED 10,000 in a fund. He owes AED 3,000 on his credit card, due this month. He follows the gold nisab. Assumed gold price: AED 450 per gram.
- Assets: 5,000 + 60,000 + 10,000 = AED 75,000
- Net wealth: 75,000 − 3,000 = AED 72,000
- Gold nisab: 85 × 450 = AED 38,250
- Zakat: 72,000 × 2.5% = AED 1,800.00
Example 2: Gold jewellery and two different views
Fatima has AED 20,000 in savings and 50 grams of gold jewellery that she wears. Assumed prices: AED 450 per gram of gold, AED 5 per gram of silver.
- If she follows the view that worn jewellery is zakatable: 20,000 + (50 × 450) = AED 42,500. This is above the gold nisab of AED 38,250. Zakat: AED 1,062.50.
- If she follows the view that worn jewellery is exempt, only the AED 20,000 counts. That is below the gold nisab. Using the silver nisab of AED 2,975, zakat would be AED 500.00.
This shows why it matters to know which opinion you follow. To model the second case, leave the gold grams at 0.
Example 3: Worker in Riyadh (silver nisab)
Bilal has SAR 2,000 in cash and SAR 9,000 in the bank. A friend owes him SAR 1,500 and has promised to repay. Bilal owes SAR 4,000 to a relative, due now. He follows the silver nisab. Assumed silver price: SAR 5 per gram.
- Assets: 2,000 + 9,000 + 1,500 = SAR 12,500
- Net wealth: 12,500 − 4,000 = SAR 8,500
- Silver nisab: 595 × 5 = SAR 2,975
- Zakat: 8,500 × 2.5% = SAR 212.50
Under the gold nisab, with an assumed price of SAR 440 per gram, the nisab would be SAR 37,400 and no zakat would be due. The choice of standard makes a real difference for people with modest savings.
Example 4: Small shop in Kuwait
Yousef runs a small grocery. On his zakat date his stock is worth KWD 8,000 at sale price, his business bank account holds KWD 3,500 and he owes suppliers KWD 1,500, due this month. He follows the gold nisab. Assumed gold price: KWD 36 per gram.
- Assets: 8,000 + 3,500 = KWD 11,500
- Net wealth: 11,500 − 1,500 = KWD 10,000
- Gold nisab: 85 × 36 = KWD 3,060
- Zakat: 10,000 × 2.5% = KWD 250.000
His shelves, fridges and delivery van are tools of the business, so they are not included.
Example 5: Below the nisab
Maryam has PKR 500,000 in savings. She follows the gold nisab, and the assumed price is PKR 40,000 per gram. The gold nisab is 85 × 40,000 = PKR 3,400,000. Her savings are below it, so no zakat is due under that standard. The calculator shows zero and explains why.
Special cases and different opinions
Gold and silver jewellery you wear
This is one of the best-known differences of opinion. The Hanafi school holds that zakat is due on gold and silver jewellery whether it is worn or not. Many scholars from the Maliki, Shafi'i and Hanbali schools hold that jewellery worn regularly in a normal amount is exempt, like clothes. Most agree that gold kept mainly as savings, or far beyond normal use, is zakatable. Follow the view of the scholar you rely on. If you do not count worn jewellery, leave it out of the gold grams box.
Gold that is not 24 carat
Jewellery in the Gulf is often 22, 21 or 18 carat. Zakat is on the pure gold content. Multiply the weight by the carat and divide by 24. For example, 40 grams of 21 carat gold contains 40 × 21 ÷ 24 = 35 grams of pure gold. Enter 35 in the calculator.
Monthly salary and savings
Most scholars do not ask you to pay zakat on each salary as it arrives. On your zakat date, add whatever you have saved. If you are trying to plan your savings, our UAE Salary Calculator can help you see what you take home each month.
End of service gratuity and pension funds
Gratuity that you have not yet received is not fully in your control. Many scholars say no zakat is due on it until you receive it, after which it joins your other savings. Some say you should pay for past years once you receive it. If you have a large gratuity coming, you can estimate it with our UAE Gratuity Calculator and ask a scholar how to treat it.
Debts you owe
Scholars differ on how much debt to deduct. A common view is to deduct debts that are due now or within the coming months, such as a credit card balance, rent you owe, or a few loan instalments. For a long mortgage or personal loan, many scholars say you deduct only the instalments due in the next 12 months, not the full balance. If you have a home loan, the UAE Mortgage Calculator can show your monthly instalment.
Gregorian year instead of lunar year
If you calculate on a fixed Gregorian date, your year is about 11 days longer than a lunar year. Some scholars suggest raising the rate slightly to make up for this. ZATCA uses a similar idea for businesses: about 2.57% for companies with a Gregorian financial year. The simplest way is to use a Hijri date.
Zakat in the Gulf countries
Saudi Arabia and ZATCA
In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) collects zakat from businesses. Companies and commercial establishments owned by Saudi and GCC nationals file zakat returns based on their zakat base. New Zakat Implementing Regulations apply to financial years that start on or after 1 January 2024. This is a business system. It is not a tax on an expat worker's personal savings, and you do not file a personal zakat return with ZATCA for your bank balance. Personal zakat remains your own duty, which you calculate and pay yourself. If you run a business in Saudi Arabia, speak to an accountant about ZATCA zakat and VAT. Our Saudi VAT Calculator covers the VAT side.
UAE, Kuwait, Qatar and others
Several Gulf states have official zakat bodies that receive and distribute zakat. Examples include the Zakat Fund in the UAE, the Zakat House in Kuwait and the Zakat Fund under Qatar's Ministry of Awqaf. Paying through them is voluntary for individuals. Many people also pay through trusted charities or give directly to eligible people.
Common mistakes when calculating zakat
- Paying only on the part above the nisab. Once you reach the nisab, the 2.5% applies to all of your net zakatable wealth.
- Using the gram weight of jewellery, not the pure gold content. Adjust for carat.
- Counting your car or home. Personal-use items are not zakatable.
- Deducting the whole mortgage. Many scholars allow only the near-term instalments to be deducted.
- Mixing currencies. Convert everything into one currency before you add it up.
- Using an old gold price. Use the price on your zakat date.
- Changing standards every year. Pick a nisab and a zakat date and stay consistent.
Practical tips
- Choose a fixed Hijri zakat date and write it down. Many people choose Ramadan because the reward of giving in that month is hoped to be greater.
- If you are not sure whether you have reached the nisab, many scholars advise paying, since it is better to give more than to miss an obligation.
- Pay through a channel you trust and keep a record.
- If your situation is complex, such as a business partnership, property portfolio or large investment funds, ask a qualified scholar or an Islamic finance adviser.
Where to get reliable help
For fiqh questions, the best source is a scholar or mosque imam you trust, or an official fatwa body in your country. Gulf zakat funds also answer questions and many publish their own calculators. Businesses in Saudi Arabia should use ZATCA's guidelines or a registered accountant.
Frequently asked questions
What is the zakat rate?
For cash, savings, gold, silver, trade goods and similar wealth, the rate is 2.5%, which is one fortieth. You pay it on the net zakatable wealth you have held for one full lunar year, as long as it is at or above the nisab.
Should I use the gold nisab or the silver nisab?
Both are valid views. Many scholars and zakat bodies prefer the silver nisab for cash because it is lower and more people end up paying, which helps the poor. Others prefer the gold nisab because its value is more stable today. If you are not sure, ask a scholar you trust and follow that advice consistently.
Is the nisab 85 grams or 87.48 grams of gold?
Both figures are used. 85 grams of gold and 595 grams of silver are the most common modern figures. Many Hanafi scholars use 87.48 grams of gold and 612.36 grams of silver. The difference comes from how the old dinar and dirham weights are converted into grams.
Do I pay zakat on gold jewellery that I wear?
Scholars differ. The Hanafi school holds that zakat is due on gold and silver jewellery even if it is worn. Many scholars of the Maliki, Shafi'i and Hanbali schools hold that jewellery worn regularly for normal adornment is exempt. Almost all agree that gold kept as savings or investment is zakatable. Follow the view of a scholar you trust.
Do I pay zakat on my monthly salary?
Most scholars say zakat is not taken from each salary payment. Instead, whatever you have saved from your salary and still hold on your zakat date is added to your other zakatable wealth and checked against the nisab.
Is my flat, car or furniture zakatable?
No. Your home, car, furniture, clothes and other items for personal use are not zakatable. Property bought to sell for profit is treated as trade goods. For rental property, scholars generally say the rent you have saved is zakatable, not the value of the building.
Can I deduct my loans and credit card balance?
Many scholars allow you to deduct debts that are due now or in the near future, such as a credit card balance or instalments due in the coming months. For long loans such as a mortgage, a common view is to deduct only the instalments due within the next year, not the whole loan.
Does ZATCA collect zakat from individuals in Saudi Arabia?
ZATCA's zakat system is for businesses, such as companies and commercial establishments owned by Saudi and GCC nationals, which file zakat returns. Personal zakat on your own savings is something you calculate and pay yourself, for example through a charity or an official zakat fund.
Can I pay zakat to my family in my home country?
Many scholars allow zakat to go to poor relatives such as brothers, sisters, uncles or cousins who are eligible. It is generally not given to your own parents, grandparents, children or wife, because you are already responsible for supporting them. Check with a scholar for your situation.
Does this calculator check live gold prices?
No. The calculator does not connect to the internet. You type in the gold and silver price per gram on your zakat date, which you can get from a gold shop, your bank or a trusted price website.
Disclaimer
This calculator and guide are for general information only. They are not a fatwa and do not represent any one school of thought as the only correct view. Zakat rulings can depend on your personal situation and on the opinion you follow. Please confirm your zakat with a qualified scholar you trust. Metal prices in the examples are assumed figures, not market quotes.
Sources and references
Nisab gram figures and the basis of 20 dinars and 200 dirhams: Qatar Charity – fatwa on nisab in grams. Hanafi figures of 87.48 g and 612.36 g: National Zakat Foundation – What is the nisab in grams?. Saudi business zakat: Zakat Collection Law (Royal Decree No. 17/2/28/8634) and the Zakat Implementing Regulations for financial years from 1 January 2024, administered by the Zakat, Tax and Customs Authority (ZATCA) – Zakat General Guideline; summary of the regulations by KPMG Saudi Arabia.