What is the Nisab threshold for Zakat in 2025?

The Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is based on the value of 85 grams of gold (gold nisab) or 595 grams of silver (silver nisab). Because silver prices are generally lower, the silver nisab results in a lower threshold and is considered the more conservative calculation by many scholars.

Is Zakat 2.5% of total assets or net wealth?

Zakat is 2.5% of your net zakatable wealth — that is, your total eligible assets minus your short-term liabilities (debts due within the year). Long-term debts like mortgages on primary residences are typically not deducted, but short-term obligations, business debts, and bills due are deductible.

Do I pay Zakat on my primary home?

No. Your primary residence is not subject to Zakat because it is a necessity for daily life, not an investment asset. However, investment properties held for rental income or resale are zakatable, and the rental income or property value may be included depending on scholarly opinion.

Is Zakat due on stocks and cryptocurrency?

Yes. Stocks and cryptocurrency are generally subject to Zakat because they are tradable assets held as investments. For stocks, many scholars recommend calculating Zakat on the current market value or on the zakatable portion of the company's underlying assets. Cryptocurrency (Bitcoin, Ethereum, etc.) is treated as a digital asset and Zakat is calculated on its current market value.

When should Zakat be paid?

Zakat becomes due once a full Islamic lunar year (Hawl) has passed with your wealth continuously above the Nisab threshold. Many Muslims choose to calculate and pay Zakat during Ramadan for the added spiritual reward, though it can be paid at any time of year once the Hawl has been completed.

Is Zakat payable on gold jewelry?

Scholars differ on this point. The majority Hanafi position is that gold and silver jewelry is zakatable regardless of whether it is worn. The Maliki, Shafi'i, and Hanbali schools generally exempt jewelry intended for personal use. Our calculator includes gold by default — you can exclude personal jewelry by not entering it, or enter only investment/excess gold.

Free Zakat Calculator 2025 — Calculate Zakat on Gold, Cash & Investments

💱 Currency

📐 Both nisab thresholds calculated automatically

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Precious Metal Prices

Enter current market prices per gram in your currency

Gold price per gram

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Silver price per gram

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Cash & Liquid Assets

Physical cash, bank accounts, deposits, foreign currency

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Cash in hand (any purpose)

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Bank balances (all accounts)

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Money given to others / loaned out

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Security deposits paid (recoverable)

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Digital wallets (JazzCash, Easypaisa, etc.)

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Foreign currency (at current exchange rate)

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Gold & Silver

Physical gold, silver, jewelry (Hanafi: include all)

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Gold amount

Silver amount

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Investments & Savings

Stocks, bonds, provident fund, insurance principal

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Stocks / shares (market value)

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Mutual funds (current value)

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Bonds & savings certificates

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Provident fund (received / withdrawable)

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Cryptocurrency (current market value)

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Insurance policy principal amount ★

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★ Insurance is impermissible in Islam, but if collected, Zakat is due on the principal amount.

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Business Assets

Inventory, raw materials, cash in business, receivables

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Inventory / stock value

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Raw materials

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Cash held in business

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Receivables (money owed to you)

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Property & Real Estate

Investment properties only — NOT your primary residence

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Investment properties (market value)

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Agricultural land value (optional)

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Include rental income received this year

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Vehicles & Other Assets

Only vehicles held for resale or business — not personal use

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Include vehicles held for resale / business use

High-value miscellaneous assets

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Financial Liabilities & Debts

Loans, unpaid bills, rent due, salaries payable

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⚠️ Only deduct liabilities that are currently due. Long-term mortgages on your primary home are generally not deductible.

Current loans payable

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Wife's unpaid Mehr (دین مہر)

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Electricity bill due

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Gas bill due

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Water bill due

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Telephone bill due

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House rent due

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Shop / warehouse rent due

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Employees' unpaid salaries

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Other due expenses & liabilities

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Zakat Summary

Updates in real time as you enter values

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🥇 Gold nisab (85g) —

🥈 Silver nisab (595g) —

0 Silver Nisab

Zakat Due

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Enter values above to calculate

2.5% of net zakatable wealth (i.e. Net ÷ 40) · Using silver nisab (lower & more conservative)

What is Zakat? The Third Pillar of Islam

Zakat (زكاة) is one of the Five Pillars of Islam and one of the most important acts of worship in the Islamic faith. It is a mandatory form of almsgiving — an annual purification of wealth — that every financially capable Muslim must pay to support those in need. Unlike voluntary charity (Sadaqah), Zakat is an obligation with precise rules on how it is calculated, who must pay it, and who is eligible to receive it.

The word Zakat comes from the Arabic root meaning "to purify" or "to grow." By paying Zakat, a Muslim purifies their remaining wealth and fulfills a communal responsibility to reduce poverty and economic inequality within the Muslim community.

📖 The Quran mentions Zakat alongside Salah (prayer) over 80 times — emphasizing its equal importance among the pillars of faith.

Zakat is due at a rate of 2.5% on all net zakatable wealth that has remained above the Nisab threshold for one full lunar year (known as Hawl). The eight categories of eligible recipients are specified in Surah At-Tawbah (9:60): the poor, the needy, Zakat collectors, new Muslims, those in debt, travelers in need, those striving in Allah's cause, and freeing of captives.

How is Zakat Calculated? Nisab, Hawl & the 2.5% Rule

Calculating Zakat involves three core concepts: the Nisab (minimum threshold), the Hawl (one lunar year holding period), and the Zakat rate of 2.5%.

Nisab (Gold basis): 85 grams of gold. If the gold price is $95/gram, the gold nisab is $8,075.

Nisab (Silver basis): 595 grams of silver. At $1.00/gram, the silver nisab is $595 — significantly lower.

Hawl: Your net wealth must stay above the Nisab for a full Islamic lunar year (354 days) before Zakat becomes due.

Zakat Formula: Zakat = 2.5% × (Total Zakatable Assets − Short-term Liabilities)

Many scholars recommend using the silver nisab as it is more inclusive and ensures more Muslims fulfill their obligation. Others use the gold nisab. Both are valid — select the basis you follow in the calculator above.

🧮 Example: If your net wealth is $20,000, your Zakat = 2.5% × $20,000 = $500

Which Assets Are Subject to Zakat?

Not all wealth is zakatable. Islam distinguishes between assets that are "growing" (productive/tradable) and personal necessities. Here's a quick guide to what counts toward your Zakat calculation:

✅ Cash & bank balances — fully zakatable, including foreign currency

✅ Gold & silver — zakatable at market value (Hanafi: includes all jewelry)

✅ Stocks & shares — zakatable on current market value or zakatable portion

✅ Cryptocurrency — zakatable at current market value (digital trading assets)

✅ Business inventory & receivables — zakatable at current value

✅ Investment properties — zakatable if held for resale or producing rental income

❌ Primary residence — not zakatable (personal necessity)

❌ Personal vehicles — not zakatable if used for personal transportation

❌ Household furniture & appliances — not zakatable

When in doubt, consult a qualified Islamic scholar for assets in grey areas, such as pension funds, EOBI contributions, or shares in companies with mixed halal/haram income.

When to Pay Zakat & Who Receives It

Zakat becomes due once your wealth has exceeded the Nisab threshold for one complete lunar year (Hawl). While it can be paid at any point during the year once the Hawl is complete, many Muslims choose to pay during Ramadan for the additional spiritual reward. Some even pay in advance, which is permissible if the Nisab has already been met.

The eight categories of eligible Zakat recipients, as defined in the Quran (9:60), are:

Al-Fuqara — The poor who cannot meet basic needs

Al-Masakin — The needy who are in financial hardship

Al-Amileen — Zakat administrators and collectors

Al-Mu'allafah — New Muslims or those whose hearts are to be reconciled

Ar-Riqab — Freeing of enslaved people (historically)

Al-Gharimeen — Those in debt they cannot repay

Fi Sabilillah — Those striving in the cause of Allah

Ibnus-Sabil — Travelers in need who are far from home

🕌 You can pay Zakat directly to individuals in need, or through verified Islamic charity organizations such as Edhi Foundation, Akhuwat, or Saylani Welfare Trust in Pakistan.

Zakat Calculator

Cash & Liquid Assets

Gold & Silver

Investments & Savings

Business Assets

Property & Real Estate

Vehicles & Other Assets

Financial Liabilities & Debts

Zakat Summary

What is Zakat? The Third Pillar of Islam

How is Zakat Calculated? Nisab, Hawl & the 2.5% Rule

Which Assets Are Subject to Zakat?

When to Pay Zakat & Who Receives It

Frequently Asked Questions about Zakat

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