01
Cash
Cash and savings
Money you own and can access is generally part of your Zakatable wealth, whether it sits in a current account, savings account, wallet, or digital balance.
Start with the basics.
Then find your asset.
Begin with the foundations — what Zakat is, how Nisab works, when it is due, and who receives it — then dig into the asset that applies to you.
What is Zakat
What is Zakat? Meaning, purpose, and who must pay
Zakat is the third pillar of Islam: an obligatory, annual transfer of a fixed share of qualifying wealth to those entitled to receive it. It is worship expressed through money — a duty, not a donation.
Read ↗NisabNisab explained: the gold and silver thresholds
Nisab is the threshold that decides whether Zakat is owed at all. If your net Zakatable wealth is below it, no Zakat is due; if you are at or above it for a lunar year, the 2.5% applies.
Read ↗TimingWhen is Zakat due? The lunar year and your Zakat date
Zakat is tied to time as well as amount. It becomes due when a full lunar year has passed on wealth that has stayed above the Nisab threshold — measured from a date you set once and keep.
Read ↗Worked exampleA fully worked Zakat calculation, step by step
The formula is easier to trust once you have seen it run end to end. Here is a complete calculation with figures — using illustrative numbers you can replace with your own.
Read ↗RecipientsWho can receive your Zakat? The eight categories
Zakat is not only calculated in a defined way — it is also directed to defined people. The Qur'an sets out eight categories of eligible recipients, and giving outside them does not discharge the obligation.
Read ↗Common mistakesCommon Zakat mistakes and how to avoid them
Most Zakat errors are not about the 2.5% itself. They come from the inputs: the wrong date, the wrong debts, or assets quietly left out. Here are the frequent ones and how to avoid each.
Read ↗Zakat al-Fitr
Zakat al-Fitr (Fitrana): amount, timing, and who pays
Zakat al-Fitr — also called Fitrana or Sadaqat al-Fitr — is a separate, obligatory charity given at the end of Ramadan. It is small, fixed per person, and paid before the Eid prayer, not a percentage of your savings.
Read ↗Missed ZakatHow to pay missed or backdated Zakat from past years
Zakat you did not pay in past years does not disappear. It remains an obligation you can still discharge — by making a careful estimate for each year and paying it, even if your records are imperfect.
Read ↗Jewellery viewsIs Zakat due on jewellery? The four schools compared
No single question about Zakat is asked more often than whether it is due on the gold and silver a woman wears. The schools of law genuinely differ, so the honest answer is to understand the positions and choose a qualified view — consistently.
Read ↗Zakat & taxZakat and tax: how they differ and interact
Zakat and tax are often confused because both take a slice of what you own. But they rest on different foundations, go to different recipients, and — in almost every case — one does not replace the other.
Read ↗Pakistan
Zakat in Pakistan: bank deduction, exemption, and your own wealth
Pakistan is unusual: the state deducts Zakat directly from some bank accounts. Understanding what that covers — and what it does not — is the key to calculating the rest of your Zakat correctly.
Read ↗United KingdomZakat in the UK: charities, Gift Aid, and giving locally
In the UK there is no government Zakat collection. You work out your own Zakat and give it through trusted channels — which makes choosing where it goes, and understanding Gift Aid, part of the process.
Read ↗02
Gold
Gold and gold jewellery
Gold is valued by its net weight and current market price. Scholarly schools differ on personal-use jewellery, so your method should be explicit and consistent.
03
Silver
Silver and silverware
Owned silver can be included using its fine-silver weight and the market value on your Zakat date.
04
Stocks
Stocks and shares
The treatment of shares depends on why you hold them and which calculation method you follow: market value for trading, or a Zakatable-assets approach for long-term ownership.
05
Crypto
Cryptocurrency and digital assets
Tradable digital assets are commonly treated as wealth at their fair market value, but novel tokens and locked positions may need specialist review.
06
Inventory
Business inventory
Goods held for resale are generally included at a realistic current selling or wholesale value, depending on the method advised for your business.
07
Business cash
Business cash and working capital
A business calculation brings together liquid funds, trading stock, and collectible debts, then considers eligible short-term obligations.
08
Receivables
Money owed to you
Loans and invoices you reasonably expect to collect may form part of your Zakatable wealth; doubtful debts need careful classification.
09
Pensions
Pensions and retirement accounts
Retirement arrangements vary widely in ownership, accessibility, and underlying assets, so they should not be treated as one universal category.
10
Property
Property and real estate
A home or property held for use is generally treated differently from property acquired as trading stock for resale.
11
Rent
Rental income
The rental asset and the cash it produces are usually considered separately: the building may be exempt while saved rent joins other cash.
12
Debts
Debts and liabilities
Eligible near-term liabilities may reduce net Zakatable wealth, but deducting an entire long-term loan can materially distort the result.
13
Student loans
Student loans
Long-term student debt does not automatically erase present Zakatable wealth; the deductible amount depends on immediacy and the scholarly method used.
14
Mortgage
Mortgages and home finance
A long-term home-finance balance is normally analysed by what is currently payable rather than deducted in full from liquid wealth.
15
Agriculture
Crops and agricultural produce
Agricultural Zakat has its own thresholds, rates, timing, and irrigation considerations and should not be forced into a standard 2.5% cash calculator.
16
Livestock
Livestock
Livestock rules can depend on species, number, grazing, and trade purpose; animals held as trading inventory may follow business-stock treatment.
17
FX
Foreign currency
Balances in different currencies should be converted once, using a consistent rate and a clearly documented calculation date.
18
Inheritance
Inheritance and estate distributions
Inheritance may become part of your wealth when ownership is established and the assets are received or accessible; delays and disputed estates complicate timing.