How zakat is calculated
- Add up all zakatable assets: gold, silver, cash, bank balances, business stock and money you expect to get back.
- Subtract debts and bills that are due now.
- If the result is equal to or more than the nisab, zakat is due.
- Zakat = 2.5% of the net amount (one-fortieth).
Example: Rs 600,000 in the bank, Rs 150,000 cash and 2 tola gold at Rs 400,000 a tola (Rs 800,000) gives Rs 1,550,000. After Rs 100,000 of debts, net wealth is Rs 1,450,000. That is above the silver nisab, so zakat is 2.5% × 1,450,000 = Rs 36,250.
What is and isn't zakatable
| Zakatable | Not zakatable |
|---|---|
| Gold and silver, including jewellery | Your own house |
| Cash, bank accounts, savings certificates | Personal car and household goods |
| Business stock and property bought to sell | Business equipment and machinery |
| Loans you have given and expect back | Rental property itself (but saved rent is) |
Rulings can differ between schools of thought. For complex cases, such as business partnerships or long-term loans, please ask a qualified scholar.
Frequently asked questions
What is the nisab for zakat?
Nisab is the minimum wealth on which zakat becomes due: 52.5 tola (612.36 g) of silver or 7.5 tola (87.48 g) of gold. Most scholars in Pakistan advise using the silver nisab when your wealth is a mix of cash, gold and other assets, because it is lower and benefits more of the poor.
Is zakat due on jewellery I wear?
According to the Hanafi school, followed by most people in Pakistan, zakat is due on gold and silver jewellery whether it is worn or not. Other schools exempt jewellery for personal use. Count it at its gold/silver value, not including making charges.
Is zakat due on my house, car or plot?
Not on the home you live in, your personal car or household items. A plot or property bought to resell is business stock, so its current market value is zakatable.
When should I pay zakat?
When a full Islamic (lunar) year has passed on wealth above nisab. Many people in Pakistan calculate on 1 Ramadan, but you can use any fixed date each year.
What about the zakat banks deduct on 1 Ramadan?
Banks deduct zakat from savings accounts on the first of Ramadan unless you have filed a zakat exemption declaration (CZ-50). If the bank has already deducted it, subtract that amount from what you owe on those savings.
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Sources
- Zakat nisab: 52.5 tola silver / 7.5 tola gold (classical Hanafi measures)
- Zakat and Ushr Ordinance 1980 (bank deduction on 1 Ramadan)
This calculator gives an estimate for guidance. It is not official advice. Rates and rules change, so confirm important decisions with the relevant authority or a qualified professional. See how we calculate, or report a mistake.