Calculate Your Zakat in 5 Steps
Zakat is 2.5% of your total zakatable wealth, paid annually once your wealth exceeds the nisab threshold for one full lunar year. Here's how to calculate it accurately for 2026.
Step 1: Determine the Nisab
The nisab is the minimum wealth threshold. There are two measures:
- Gold nisab: 87.48 grams of gold ≈ $6,500–$7,500 (varies with gold price)
- Silver nisab: 612.36 grams of silver ≈ $450–$550
Most scholars recommend using the silver nisab as it includes more people in the obligation — ensuring more wealth is purified and more people receive support.
Step 2: Add Up Your Zakatable Assets
Include:
- Cash: All bank accounts, cash on hand, digital wallets
- Gold and silver: All jewelry, coins, bars (by weight × current market price)
- Investments: Stocks, mutual funds, ETFs (current market value)
- Retirement accounts: 401(k), IRA — scholars differ; many say on accessible balance
- Business inventory: Goods held for sale (at market value)
- Receivables: Money owed to you that you expect to collect
- Rental income: Savings from rental property income
Exclude:
- Primary home
- Personal car
- Clothing and household items for personal use
- Tools and equipment used for business (not for sale)
Step 3: Subtract Your Debts
Deduct any debts or liabilities you owe:
- Outstanding loans and credit card debt
- Mortgage payments due (immediate installments, not total mortgage)
- Bills due
Step 4: Calculate Net Zakatable Wealth
Net Zakatable Wealth = Total Assets − Total Liabilities
If this exceeds the nisab, proceed to Step 5.
Step 5: Pay 2.5%
Zakat Due = Net Zakatable Wealth × 0.025
Example Calculation
- Savings account: $25,000
- Checking account: $3,000
- Gold jewelry (50g × $75/g): $3,750
- Stock portfolio: $15,000
- Money owed to you: $2,000
- Total assets: $48,750
- Credit card debt: −$3,000
- Car loan payment due: −$500
- Net zakatable wealth: $45,250
- Zakat due: $45,250 × 2.5% = $1,131.25
Who Receives Zakat?
The Quran specifies 8 categories (Surah At-Tawbah, 9:60): the poor, the needy, zakat collectors, those whose hearts are to be reconciled, freeing captives, those in debt, in the cause of Allah, and the stranded traveler.
Give Your Zakat to Umma Foundation
Umma Foundation is a registered 501(c)(3) nonprofit (Tax ID: 86-3883211) that distributes zakat-eligible aid to families in need across Gaza, Sudan, Yemen, Lebanon, and the US. Your zakat reaches those who need it most.
