Zakat is one of the five pillars of Islam, and unlike Sadaqah it is not optional. It is a fixed duty on wealth: 2.5% of everything you have held above the nisab threshold for one complete lunar year.
It falls on every adult Muslim of sound mind whose net wealth sits above nisab for that full year. If your wealth dips below the threshold partway through, the year restarts from the point it rises above again.
What counts as zakatable wealth
- Cash in hand, in current and savings accounts
- Gold and silver, including jewellery you do not wear daily
- Business stock and inventory, valued at what you would sell it for
- Money owed to you that you reasonably expect to be repaid
- Shares, funds, prize bonds and saving certificates
What does not
Your home, the car you drive, the clothes you wear, the tools of your trade and household furniture are all exempt. These are things in use, not wealth being stored.
From that total you subtract what you owe — debts, bills already due, supplier invoices — and compare the remainder against nisab. Our calculator does the arithmetic for you.