What Is the Zakat Calculator?
Zakat is one of the Five Pillars of Islam — a mandatory annual alms-giving of 2.5% on net zakatable wealth that has been held above the Nisab threshold for one full lunar year (Hawl). This calculator helps Muslims determine their Zakat obligation for 2026 based on their cash, gold, silver, business inventory, and investment holdings.
Nisab is the minimum threshold of wealth above which Zakat becomes obligatory. It is calculated as the value of either 85 grams of gold or 595 grams of silver — whichever is lower is typically used by contemporary scholars to ensure more people fulfill the obligation.
How to Use This Calculator
- Enter the total value of your cash and bank balances.
- Enter the market value of your gold and silver holdings (in PKR).
- Enter the value of your business inventory and receivables (trade goods you intend to sell).
- Enter the value of your shares and investment funds (market value of liquid investments).
- Click Calculate Zakat. The tool checks against the Nisab and calculates your 2.5% obligation.
Zakat Calculation Formula
Nisab (Gold): 85 grams × current gold price per gram
Nisab (Silver): 595 grams × current silver price per gram
If total wealth ≥ Nisab:
Zakat Payable = Total Zakatable Wealth × 2.5%
Worked Example
Gold price: PKR 25,000/gram. Nisab (gold) = 85 × 25,000 = PKR 2,125,000
A person has: cash PKR 1,800,000 + gold value PKR 750,000 + business inventory PKR 400,000 = Total: PKR 2,950,000
- Above Nisab? Yes (PKR 2,950,000 > PKR 2,125,000)
- Zakat due: 2,950,000 × 2.5% = PKR 73,750
What Is and Isn’t Zakatable
Zakatable assets include: Cash, bank balances, gold, silver, trading inventory, receivable debts owed to you, liquid investments (shares, mutual funds).
NOT zakatable: Your primary residence, personal car, household goods, tools of trade, retirement savings in illiquid funds, and debts you owe to others (deducted from your total).
Common Mistakes to Avoid
- Not deducting liabilities: Debts you owe (rent due, loans, bills) can be deducted from your total zakatable wealth before applying the 2.5% rate. Many people calculate Zakat on gross assets, potentially overpaying.
- Using gold Nisab when silver threshold is lower: The silver Nisab is often much lower in PKR value than gold, meaning it is stricter. Using the lower of the two ensures you fulfill the obligation correctly according to most scholarly opinion.
- Paying Zakat on illiquid property investments: Land held for personal use is not zakatable. Land bought specifically for resale (trading intent) is zakatable. The intent matters.
Accuracy Notes
Nisab thresholds in PKR change daily with gold and silver prices. The rates used in this calculator are reference figures for 2026 — check current gold prices from the Karachi or international market before finalizing your calculation. Scholars differ on some zakatable asset categories; consult your Islamic scholar for personal guidance on complex situations such as pension funds, cryptocurrency, and business partnership stakes.
Which of Your Assets Are Actually Zakatable?
This is where most people make mistakes. Zakat is not due on everything you own — it applies specifically to wealth that has growth potential and has been held for a full lunar year (Hawl). Here is what counts and what does not:
- Cash and bank savings: Fully zakatable. Include current accounts, savings accounts, and any cash at home. Fixed deposits are included at their current value.
- Gold and silver: Zakatable at market value on the Zakat due date — whether worn as jewellery or stored. Scholars differ on daily-worn jewellery; the majority position (Hanafi) includes it.
- Business inventory: Stock held for sale is zakatable at its trade value. Equipment and tools used in business (not for sale) are exempt.
- Investments and shares: Zakatable on the portion representing liquid assets (cash, receivables, inventory) of the companies held. A common simplification: if shares are held for capital gain, calculate on full market value.
- Cryptocurrency: Contemporary scholars who have addressed this treat crypto as a tradable asset — zakatable at market value on the Zakat due date if held for more than a lunar year.
- Your home, car, furniture: NOT zakatable. Personal-use assets are exempt regardless of their value.
- Salary income: Not zakatable as income — but the savings left over after expenses, if they have been held for a lunar year and exceed Nisab, are zakatable. To figure out your net savings from your job, you can use our Salary Calculator.
Nisab Threshold: Why the Gold and Silver Standards Give Different Numbers
Nisab is the minimum wealth threshold below which Zakat is not obligatory. The Prophet ﷺ set it at 87.48 grams of gold or 612.36 grams of silver. In today's market, these two give very different figures:
Gold Nisab is typically 60-80x higher than Silver Nisab due to how gold and silver prices have diverged over centuries. If you use the Gold standard, you may be exempt. If you use the Silver standard, you likely are not.
The Hanafi position (dominant in Pakistan) is to use the Silver Nisab because it includes more people and is the more cautious position for fulfilling obligation. Our calculator uses the Silver Nisab by default. If you follow a different madhab or scholar's ruling, you can apply the Gold Nisab by adjusting the threshold field.
Zakat on Salary: The Question Everyone Gets Wrong
A very common misconception: "I earn a salary, so I pay Zakat on my salary every month." This is not how it works.
Zakat is calculated on net saved wealth — not income. Here is the correct approach for a salaried employee:
- Choose one fixed date as your annual Zakat date (many people use the 1st of Ramadan).
- On that date, total everything you own that is zakatable: cash, savings, gold, investments.
- Subtract genuine debts that are due now (not future obligations).
- If what remains exceeds the Silver Nisab, calculate 2.5% of the total.
Real-life scenario: Ahmad earns Rs. 150,000/month. On his Zakat date, he has Rs. 800,000 in savings, Rs. 200,000 in a mutual fund, and gold worth Rs. 150,000. He owes Rs. 100,000 on a personal loan due this month. His Zakatable wealth = (800,000 + 200,000 + 150,000) − 100,000 = Rs. 1,050,000. Zakat due = 2.5% × 1,050,000 = Rs. 26,250.
How Debts Affect Your Zakat — What You Can and Cannot Deduct
Not all debts reduce your Zakatable wealth. The rule is: only debts that are currently due can be deducted — not future installments.
- Can deduct: The installment due this month on a car loan, rent owed to your landlord, any immediate bill.
- Cannot deduct: The remaining balance of a 5-year mortgage (only the current month's installment).
- Cannot deduct: Business loans secured against non-zakatable business assets.
Five Zakat Mistakes That Lead to Underpayment
- Forgetting gold jewellery. Most women exclude their jewellery, but the majority scholarly position is that it is zakatable at market value.
- Using purchase price instead of current price. Zakat is always calculated at the current market value on the Zakat due date, not what you paid for an asset.
- Deducting the full mortgage balance. Only the installment currently due is deductible, not the outstanding loan principal.
- Not including money lent to others. If you have lent money and expect it to be returned, it is part of your Zakatable wealth.
- Paying 2.5% of income instead of savings. Zakat is a tax on accumulated wealth, not on cash flow.
Frequently Asked Questions
When should I pay Zakat?
Zakat is due once a lunar year (Hawl) passes on wealth that has remained above Nisab. Many Muslims choose to pay during Ramadan for the extra spiritual reward, but it can be paid any time once the Hawl completes.
Is Zakat paid on my monthly salary?
Salary income itself is not directly zakatable at the moment of receipt. However, any portion of your salary that remains saved at the end of your Zakat year, combined with other savings, is included in your total zakatable wealth assessment.
Are shares in the stock market zakatable?
Yes, liquid shares held for trading or as long-term investment are generally zakatable. Most scholars recommend paying Zakat on the market value of your portfolio as of your Zakat date. For shares in compliant Islamic companies, more nuanced calculations apply based on the company’s underlying zakatable assets.
Does EOBI pension count as zakatable wealth?
Accumulated pension savings in a fund you do not control are not generally zakatable until received. Upon retirement and receipt of the pension balance, Zakat would apply on the received amount if above Nisab and held for a year.
📅 Last Updated: April 2026
📋 Based on Hanafi jurisprudence and contemporary scholarly consensus on Zakat
✍️ Built by Shyraz Habib, creator of AKCalc
✓ Reviewed for accuracy: May 2026