# How to Calculate Zakat: What You Owe on Your Wealth

> Zakat is 2.5% of your qualifying wealth held for a lunar year. Here's what counts, what doesn't, and how to calculate it correctly.

- URL: https://www.pyalm.com/blog/zakat-calculator-guide
- Author: Fadhil Abdulla
- Category: Free Tools
- Published: 2026-06-24
- Updated: 2026-06-24

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## What is Zakat?

Zakat is one of the five pillars of Islam — an obligatory annual payment of 2.5% on qualifying wealth that has been held for one lunar year (hawl) and exceeds the nisab threshold. It is calculated on your net zakatable assets, not your income.

## What counts as zakatable wealth

- Cash, bank balances, and savings
- Gold and silver
- Business inventory and trade goods
- Receivables you reasonably expect to collect
- Investments held for resale

## What you can deduct

- Short-term debts and bills currently due
- Outstanding supplier payments

Personal-use items — your home, your car, and everyday belongings — are generally not zakatable.

## The nisab threshold

Zakat is only due if your net wealth exceeds the nisab, traditionally the value of 85g of gold or 595g of silver. Many scholars recommend using the silver nisab because it captures more givers and benefits more recipients. The [Zakat Calculator](https://www.pyalm.com/free-tools/zakat-calculator) lets you enter the current rate.

## How to calculate

1. Add up all zakatable assets at their current market value.
2. Subtract allowable short-term liabilities.
3. Compare the result to the nisab.
4. If you're above it, multiply by 2.5%.

## Get it right in seconds

The free [Zakat Calculator](https://www.pyalm.com/free-tools/zakat-calculator) does the arithmetic for you — enter your assets and liabilities and it returns your zakat due. For complex situations, always consult a qualified scholar.

[Open the Zakat Calculator](https://www.pyalm.com/free-tools/zakat-calculator) | [More free finance tools](https://www.pyalm.com/free-tools)