Zakat is one of the Five Pillars of Islam — an obligatory annual payment of 2.5% of your qualifying wealth given to those in need. Calculating it correctly is important, and this guide will walk you through every step clearly.
What is Nisab?
Nisab is the minimum amount of wealth you must have before Zakat becomes obligatory. It is calculated based on the value of 87.48 grams of gold or 612.36 grams of silver. Islamic scholars recommend using the silver nisab as it is lower and includes more people.
| Nisab Type | Weight | ~PKR (2025) | ~USD (2025) |
|---|---|---|---|
| Silver (Recommended) | 612g silver | PKR 12,000 | ~$43 |
| Gold | 87.48g gold | PKR 1,60,000 | ~$580 |
What is Hawl?
Hawl means your wealth must have been above the Nisab continuously for one full lunar year (approximately 354 days). If your wealth drops below Nisab at any point during the year, the hawl resets. Zakat is not obligatory until the hawl is complete.
What Assets Are Zakatable?
✅ Include These in Zakat Calculation
- Cash — in hand and in bank accounts
- Gold and Silver — market value at time of calculation
- Business inventory — stock/goods for sale
- Loans you have given — money others owe you (that you expect to recover)
- Investments — stocks, mutual funds (zakatable portion)
- Rental income savings — accumulated savings from rent
❌ Do NOT Include These
- Your home (used for living)
- Personal car and household furniture
- Debts you owe to others (deduct from total wealth)
- Business equipment and machinery
The Zakat Formula
Once you have confirmed hawl is complete and your wealth exceeds Nisab:
Zakat = (Total Zakatable Assets − Debts Owed) × 2.5%
Step-by-Step Example
Let's say Ahmed has:
- Cash in bank: PKR 2,00,000
- Gold value: PKR 80,000
- Business stock: PKR 50,000
- Loan he gave a friend: PKR 20,000
- Credit card debt he owes: PKR 30,000
Total assets: 2,00,000 + 80,000 + 50,000 + 20,000 = PKR 3,50,000
Minus debts: 3,50,000 − 30,000 = PKR 3,20,000
Above Nisab (PKR 12,000)? Yes ✅
Hawl complete? Yes ✅
Zakat = 3,20,000 × 2.5% = PKR 8,000
Zakat on Gold Jewelry
There is a scholarly difference of opinion on jewelry worn regularly. The majority position (Hanafi) considers all gold jewelry zakatable. Calculate the current market value of your gold and include it.
🕌 Use Our Free Zakat Calculator
Calculate your Zakat instantly in PKR or USD — supports hawl check and silver/gold nisab.
Open Zakat Calculator →When to Pay Zakat
Many Muslims tie their Zakat payment to Ramadan for extra reward, but Zakat is due when the hawl completes — which could be any time of year. It is recommended to pay promptly once it becomes due.
May Allah accept your Zakat and bless your wealth. آمین 🤲