Basic Zakat Calculator Formulas
Basic Zakat Calculator Formulas
Zakat is one of the five pillars of Islam. It is obligatory (Farz) on every Muslim who possesses wealth equal to or above the Nisab threshold for one complete lunar year. This guide explains every Zakat formula in detail with step-by-step solved examples.
1. Nisab (Minimum Threshold)
Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. There are two standards:
Nisab Formulas
Gold Nisab:
Ngold = 87.48 grams of pure gold (24K)
Ngold = 7.5 Tola = 3 Ounces
Silver Nisab:
Nsilver = 612.36 grams of pure silver
Nsilver = 52.5 Tola = 21 Ounces
Ngold = 87.48 grams of pure gold (24K)
Ngold = 7.5 Tola = 3 Ounces
Silver Nisab:
Nsilver = 612.36 grams of pure silver
Nsilver = 52.5 Tola = 21 Ounces
Rule: If Total Wealth (W) ≥ Nisab (N), then Zakat is Wajib (obligatory).
If W < N, then Zakat is not Wajib.
If W < N, then Zakat is not Wajib.
Example: Nisab Calculation (2025 Rates)
Gold price per gram (2025) = PKR 21,000 (approx)
Silver price per gram (2025) = PKR 245 (approx)
Ngold = 87.48 g × PKR 21,000/g
Ngold = PKR 18,37,080
Nsilver = 612.36 g × PKR 245/g
Nsilver = PKR 1,50,028
Silver price per gram (2025) = PKR 245 (approx)
Ngold = 87.48 g × PKR 21,000/g
Ngold = PKR 18,37,080
Nsilver = 612.36 g × PKR 245/g
Nsilver = PKR 1,50,028
Note: Hanafi fiqh recommends using Silver Nisab (lower value) because it benefits more poor people. Most scholars in Pakistan use Silver Nisab.
2. Basic Zakat Formula
The core Zakat rate is 2.5% (or 1/40th) of total Zakatable wealth after deducting liabilities.
Master Formula
Z = (W - L) × 0.025
Where:
Z = Zakat Amount
W = Total Zakatable Wealth
L = Total Liabilities (Debts)
0.025 = 2.5% = 1/40
Where:
Z = Zakat Amount
W = Total Zakatable Wealth
L = Total Liabilities (Debts)
0.025 = 2.5% = 1/40
Expanded Formula:
W = G + S + C + B + I + T + A + St
Where:
G = Gold Value
S = Silver Value
C = Cash in Hand
B = Bank Balance (all accounts)
I = Investment Value (stocks, funds, bonds)
T = Trade Goods / Business Inventory
A = Rental Income / Receivables
St = Saved money (committees, deposits)
Net Zakatable Wealth:
Wnet = W - L
Where:
L = Loans + Debts + Bills Due + Borrowed Money
W = G + S + C + B + I + T + A + St
Where:
G = Gold Value
S = Silver Value
C = Cash in Hand
B = Bank Balance (all accounts)
I = Investment Value (stocks, funds, bonds)
T = Trade Goods / Business Inventory
A = Rental Income / Receivables
St = Saved money (committees, deposits)
Net Zakatable Wealth:
Wnet = W - L
Where:
L = Loans + Debts + Bills Due + Borrowed Money
Demo Calculation 1: Basic Zakat
Scenario: Ahmed has the following assets. Calculate his Zakat.
| Asset Type | Amount (PKR) |
|---|---|
| Gold (50 grams) | 10,50,000 |
| Silver (200 grams) | 49,000 |
| Cash in Hand | 75,000 |
| Bank Balance | 3,50,000 |
| Business Inventory | 5,00,000 |
| Investments (Stocks) | 2,00,000 |
| (-) Debts / Loans | -1,50,000 |
Step 1: Calculate Total Wealth (W)
W = G + S + C + B + T + I
W = 10,50,000 + 49,000 + 75,000 + 3,50,000 + 5,00,000 + 2,00,000
W = 22,24,000
Step 2: Subtract Liabilities (L)
Wnet = W - L
Wnet = 22,24,000 - 1,50,000
Wnet = 20,74,000
Step 3: Check Nisab
Wnet (20,74,000) ≥ Nsilver (1,50,028) ?
YES — Zakat is WAJIB
Step 4: Calculate Zakat
Z = Wnet × 0.025
Z = 20,74,000 × 0.025
Z = PKR 51,850
W = G + S + C + B + T + I
W = 10,50,000 + 49,000 + 75,000 + 3,50,000 + 5,00,000 + 2,00,000
W = 22,24,000
Step 2: Subtract Liabilities (L)
Wnet = W - L
Wnet = 22,24,000 - 1,50,000
Wnet = 20,74,000
Step 3: Check Nisab
Wnet (20,74,000) ≥ Nsilver (1,50,028) ?
YES — Zakat is WAJIB
Step 4: Calculate Zakat
Z = Wnet × 0.025
Z = 20,74,000 × 0.025
Z = PKR 51,850
3. Zakat on Gold
Zakat on gold is calculated on the current market value of gold you own. Different karat gold has different pure gold content.
Gold Zakat Formula
Pure Gold Weight:
Gpure = Gtotal × (K / 24)
Where:
Gtotal = Total gold weight in grams
K = Karat of gold (24K, 22K, 21K, 18K)
Gold Value:
Vgold = Gpure × Pgold
Where:
Pgold = Current market price per gram of 24K gold
Zakat on Gold:
Zgold = Vgold × 0.025
Gpure = Gtotal × (K / 24)
Where:
Gtotal = Total gold weight in grams
K = Karat of gold (24K, 22K, 21K, 18K)
Gold Value:
Vgold = Gpure × Pgold
Where:
Pgold = Current market price per gram of 24K gold
Zakat on Gold:
Zgold = Vgold × 0.025
Karat Conversion Table:
| Karat | Purity | Multiplier | Pure Gold in 100g |
|---|---|---|---|
| 24K | 99.9% | 24/24 = 1.000 | 100.0g |
| 22K | 91.7% | 22/24 = 0.917 | 91.7g |
| 21K | 87.5% | 21/24 = 0.875 | 87.5g |
| 18K | 75.0% | 18/24 = 0.750 | 75.0g |
Demo Calculation 2: Gold Zakat (Mixed Karat)
Scenario: Fatima owns the following gold jewelry:
- 22K Gold Necklace: 30 grams
- 21K Gold Bangles: 50 grams
- 18K Gold Ring: 10 grams
Current 24K gold price: PKR 21,000 per gram
Step 1: Convert to Pure Gold
22K Necklace:
Gpure = 30 × (22/24)
Gpure = 30 × 0.917
Gpure = 27.50g
21K Bangles:
Gpure = 50 × (21/24)
Gpure = 50 × 0.875
Gpure = 43.75g
18K Ring:
Gpure = 10 × (18/24)
Gpure = 10 × 0.750
Gpure = 7.50g
Total Pure Gold:
Gtotal pure = 27.50 + 43.75 + 7.50
Gtotal pure = 78.75 grams
Step 2: Check Nisab
78.75g < 87.48g (Gold Nisab)?
YES — Below Gold Nisab
BUT if Fatima has other wealth (cash, silver, etc.):
Check against Silver Nisab instead.
Step 3: Calculate Gold Value
Vgold = 78.75 × 21,000
Vgold = PKR 16,53,750
Vgold (16,53,750) ≥ Nsilver (1,50,028)?
YES — Zakat is WAJIB
Step 4: Calculate Zakat
Z = 16,53,750 × 0.025
Z = PKR 41,344
22K Necklace:
Gpure = 30 × (22/24)
Gpure = 30 × 0.917
Gpure = 27.50g
21K Bangles:
Gpure = 50 × (21/24)
Gpure = 50 × 0.875
Gpure = 43.75g
18K Ring:
Gpure = 10 × (18/24)
Gpure = 10 × 0.750
Gpure = 7.50g
Total Pure Gold:
Gtotal pure = 27.50 + 43.75 + 7.50
Gtotal pure = 78.75 grams
Step 2: Check Nisab
78.75g < 87.48g (Gold Nisab)?
YES — Below Gold Nisab
BUT if Fatima has other wealth (cash, silver, etc.):
Check against Silver Nisab instead.
Step 3: Calculate Gold Value
Vgold = 78.75 × 21,000
Vgold = PKR 16,53,750
Vgold (16,53,750) ≥ Nsilver (1,50,028)?
YES — Zakat is WAJIB
Step 4: Calculate Zakat
Z = 16,53,750 × 0.025
Z = PKR 41,344
4. Zakat on Silver
Silver Zakat Formula
Vsilver = Weight (grams) × Psilver (price per gram)
Zsilver = Vsilver × 0.025
Zsilver = Vsilver × 0.025
Demo Calculation 3: Silver Zakat
Scenario: Ali owns 800 grams of silver. Silver price: PKR 245/gram
Step 1: Check Nisab
800g ≥ 612.36g (Silver Nisab)?
YES — Zakat is WAJIB
Step 2: Calculate Value
Vsilver = 800 × 245
Vsilver = PKR 1,96,000
Step 3: Calculate Zakat
Z = 1,96,000 × 0.025
Z = PKR 4,900
800g ≥ 612.36g (Silver Nisab)?
YES — Zakat is WAJIB
Step 2: Calculate Value
Vsilver = 800 × 245
Vsilver = PKR 1,96,000
Step 3: Calculate Zakat
Z = 1,96,000 × 0.025
Z = PKR 4,900
5. Zakat on Cash, Bank Balance and Savings
Cash Zakat Formula
Ctotal = Chand + Cbank + Csavings + Cfd + Ccommittee + Clent
Where:
Chand = Cash in hand / wallet
Cbank = All bank account balances
Csavings = Savings accounts
Cfd = Fixed deposits
Ccommittee = Committee money (received or to receive)
Clent = Money you lent to someone (expected to return)
Zcash = Ctotal × 0.025
Where:
Chand = Cash in hand / wallet
Cbank = All bank account balances
Csavings = Savings accounts
Cfd = Fixed deposits
Ccommittee = Committee money (received or to receive)
Clent = Money you lent to someone (expected to return)
Zcash = Ctotal × 0.025
Demo Calculation 4: Cash and Bank Zakat
Scenario: Bilal has:
- Cash in wallet: PKR 25,000
- Bank current account: PKR 1,80,000
- Bank savings account: PKR 3,00,000
- Fixed deposit: PKR 5,00,000
- Committee received: PKR 2,00,000
- Lent to friend: PKR 50,000
Step 1: Total Cash Wealth
Ctotal = 25,000 + 1,80,000 + 3,00,000 + 5,00,000 + 2,00,000 + 50,000
Ctotal = PKR 12,55,000
Step 2: Check Nisab
12,55,000 ≥ 1,50,028?
YES — Zakat is WAJIB
Step 3: Calculate Zakat
Z = 12,55,000 × 0.025
Z = PKR 31,375
Ctotal = 25,000 + 1,80,000 + 3,00,000 + 5,00,000 + 2,00,000 + 50,000
Ctotal = PKR 12,55,000
Step 2: Check Nisab
12,55,000 ≥ 1,50,028?
YES — Zakat is WAJIB
Step 3: Calculate Zakat
Z = 12,55,000 × 0.025
Z = PKR 31,375
6. Zakat on Business / Trade Goods
Business Zakat Formula
Bzakatable = Inventory + Receivables + Cash - Payables
Where:
Inventory = Current market value of trade goods
Receivables = Money owed to you by customers
Cash = Business cash and bank balance
Payables = Money you owe to suppliers
Zbusiness = Bzakatable × 0.025
Where:
Inventory = Current market value of trade goods
Receivables = Money owed to you by customers
Cash = Business cash and bank balance
Payables = Money you owe to suppliers
Zbusiness = Bzakatable × 0.025
Important: Fixed assets (machinery, shop building, furniture, vehicles used for business) are NOT Zakatable. Only trade goods meant for selling are Zakatable.
Demo Calculation 5: Business Zakat
Scenario: Hassan runs a cloth shop:
| Item | Amount (PKR) |
|---|---|
| Cloth Inventory (market value) | 15,00,000 |
| Customers owe (Receivables) | 3,00,000 |
| Business Bank Balance | 2,50,000 |
| (-) Supplier Payables | -4,00,000 |
| Shop Building (Fixed Asset) | NOT Zakatable |
| Shop Furniture (Fixed Asset) | NOT Zakatable |
Bzakatable = 15,00,000 + 3,00,000 + 2,50,000 - 4,00,000
Bzakatable = PKR 16,50,000
Z = 16,50,000 × 0.025
Z = PKR 41,250
Bzakatable = PKR 16,50,000
Z = 16,50,000 × 0.025
Z = PKR 41,250
7. Zakat on Stocks and Investments
Stock Zakat Formulas
A) Trading Stocks (bought to sell):
Vstock = Number of Shares × Current Market Price
Zstock = Vstock × 0.025
B) Long-term Investment Stocks (bought for dividends):
Zdividend = Total Dividends Received × 0.025
C) Mutual Funds:
Vfund = Number of Units × Current NAV
Zfund = Vfund × 0.025
Vstock = Number of Shares × Current Market Price
Zstock = Vstock × 0.025
B) Long-term Investment Stocks (bought for dividends):
Zdividend = Total Dividends Received × 0.025
C) Mutual Funds:
Vfund = Number of Units × Current NAV
Zfund = Vfund × 0.025
Demo Calculation 6: Stock Zakat
Scenario: Sara has:
- 500 shares of Company A (trading) at PKR 120 each
- 1000 shares of Company B (long-term) with PKR 15,000 dividend received
- 200 units of Mutual Fund at NAV PKR 250
Trading Stock (Company A):
V = 500 × 120 = PKR 60,000
Z = 60,000 × 0.025 = PKR 1,500
Dividend Stock (Company B):
Z = 15,000 × 0.025 = PKR 375
Mutual Fund:
V = 200 × 250 = PKR 50,000
Z = 50,000 × 0.025 = PKR 1,250
Total Zakat on Investments:
Ztotal = 1,500 + 375 + 1,250
Ztotal = PKR 3,125
V = 500 × 120 = PKR 60,000
Z = 60,000 × 0.025 = PKR 1,500
Dividend Stock (Company B):
Z = 15,000 × 0.025 = PKR 375
Mutual Fund:
V = 200 × 250 = PKR 50,000
Z = 50,000 × 0.025 = PKR 1,250
Total Zakat on Investments:
Ztotal = 1,500 + 375 + 1,250
Ztotal = PKR 3,125
8. Zakat on Agriculture (Ushr)
Ushr Formula
Natural irrigation (rain, river, canal):
Zushr = Total Produce Value × 0.10 (10%)
Artificial irrigation (tube well, motor, purchased water):
Zushr = Total Produce Value × 0.05 (5%)
Mixed irrigation:
Zushr = Total Produce Value × 0.075 (7.5%)
Zushr = Total Produce Value × 0.10 (10%)
Artificial irrigation (tube well, motor, purchased water):
Zushr = Total Produce Value × 0.05 (5%)
Mixed irrigation:
Zushr = Total Produce Value × 0.075 (7.5%)
Demo Calculation 7: Agricultural Zakat
Scenario: Farmer Rashid harvested wheat worth PKR 8,00,000. He uses tube well for irrigation.
Irrigation type: Artificial (tube well)
Rate: 5%
Z = 8,00,000 × 0.05
Z = PKR 40,000
Rate: 5%
Z = 8,00,000 × 0.05
Z = PKR 40,000
9. Zakat on Rental Property
Rental Property Zakat Formula
Rule: Zakat is NOT on the property itself.
Zakat is on the RENTAL INCOME saved after expenses.
Rnet = Rtotal - Expenses - Mortgage Payments
Zrental = Rnet saved × 0.025
Where:
Rtotal = Total rent collected in the year
Expenses = Maintenance, repairs, taxes
Rnet saved = Portion of net rent still in your possession on Zakat date
Zakat is on the RENTAL INCOME saved after expenses.
Rnet = Rtotal - Expenses - Mortgage Payments
Zrental = Rnet saved × 0.025
Where:
Rtotal = Total rent collected in the year
Expenses = Maintenance, repairs, taxes
Rnet saved = Portion of net rent still in your possession on Zakat date
Demo Calculation 8: Rental Zakat
Scenario: Usman rents out a flat. Monthly rent PKR 50,000. Annual expenses PKR 60,000. On his Zakat date, he has PKR 3,00,000 saved from rent.
Zakat is on saved rental income:
Rsaved = PKR 3,00,000
Z = 3,00,000 × 0.025
Z = PKR 7,500
Note: The flat itself (worth crores) is NOT Zakatable because it is not for sale — it is for rental income.
Rsaved = PKR 3,00,000
Z = 3,00,000 × 0.025
Z = PKR 7,500
Note: The flat itself (worth crores) is NOT Zakatable because it is not for sale — it is for rental income.
10. Complete Zakat Calculation — Full Example
Complete Formula
Z = [ (G + S + C + B + I + T + R + A) - L ] × 0.025
G = Gold Value | S = Silver Value
C = Cash | B = Bank Balance
I = Investments | T = Trade Goods
R = Rental Savings | A = Other Assets
L = Total Liabilities
G = Gold Value | S = Silver Value
C = Cash | B = Bank Balance
I = Investments | T = Trade Goods
R = Rental Savings | A = Other Assets
L = Total Liabilities
Demo Calculation 9: Complete Zakat (Real Scenario)
Scenario: Khadija is a married woman with the following wealth on 1st Ramadan:
| Category | Detail | Value (PKR) |
|---|---|---|
| Gold (22K) | 80g jewelry | 15,40,000 |
| Silver | 150g utensils | 36,750 |
| Cash in Hand | Wallet + home safe | 45,000 |
| Bank Balance | 2 accounts combined | 4,75,000 |
| Committee | Already received | 1,50,000 |
| Prize Bonds | Face value | 75,000 |
| Business Stock | Online shop inventory | 3,00,000 |
| Rental Savings | Flat rent saved | 2,00,000 |
| (-) Loan | Personal loan owed | -80,000 |
| (-) Unpaid Bills | Utility + school fees due | -35,000 |
| House (personal use) | Living in it | NOT Zakatable |
| Car (personal use) | Daily use | NOT Zakatable |
| Clothes, Furniture | Personal items | NOT Zakatable |
Step 1: Gold Pure Value
Gpure = 80 × (22/24) = 73.33g
Vgold = 73.33 × 21,000 = PKR 15,40,000
Step 2: Total Zakatable Wealth (W)
W = Vgold + Vsilver + Chand + Cbank + Ccommittee + Cbonds + Bstock + Rsaved
W = 15,40,000 + 36,750 + 45,000 + 4,75,000 + 1,50,000 + 75,000 + 3,00,000 + 2,00,000
W = PKR 28,21,750
Step 3: Total Liabilities (L)
L = Loan + Bills
L = 80,000 + 35,000
L = PKR 1,15,000
Step 4: Net Zakatable Wealth
Wnet = W - L
Wnet = 28,21,750 - 1,15,000
Wnet = PKR 27,06,750
Step 5: Check Nisab
27,06,750 ≥ 1,50,028 (Silver Nisab)?
YES — Zakat is WAJIB
Step 6: Calculate Zakat
Z = Wnet × 0.025
Z = 27,06,750 × 0.025
ZAKAT = PKR 67,669
Gpure = 80 × (22/24) = 73.33g
Vgold = 73.33 × 21,000 = PKR 15,40,000
Step 2: Total Zakatable Wealth (W)
W = Vgold + Vsilver + Chand + Cbank + Ccommittee + Cbonds + Bstock + Rsaved
W = 15,40,000 + 36,750 + 45,000 + 4,75,000 + 1,50,000 + 75,000 + 3,00,000 + 2,00,000
W = PKR 28,21,750
Step 3: Total Liabilities (L)
L = Loan + Bills
L = 80,000 + 35,000
L = PKR 1,15,000
Step 4: Net Zakatable Wealth
Wnet = W - L
Wnet = 28,21,750 - 1,15,000
Wnet = PKR 27,06,750
Step 5: Check Nisab
27,06,750 ≥ 1,50,028 (Silver Nisab)?
YES — Zakat is WAJIB
Step 6: Calculate Zakat
Z = Wnet × 0.025
Z = 27,06,750 × 0.025
ZAKAT = PKR 67,669
11. Items NOT Subject to Zakat
| Item | Reason |
|---|---|
| House you live in | Personal use asset |
| Car for personal use | Personal use asset |
| Furniture and household items | Personal use |
| Clothes and personal items | Personal use |
| Tools of your trade | Used for work, not for sale |
| Rental property (the building itself) | Only rental income is Zakatable |
| Gemstones (diamonds, rubies) for personal use | Not gold/silver, personal use |
12. Quick Reference — All Zakat Rates
| Asset Type | Rate | Formula |
|---|---|---|
| Gold, Silver, Cash, Bank, Investments, Trade Goods | 2.5% | Value × 0.025 |
| Agriculture (natural irrigation) | 10% | Value × 0.10 |
| Agriculture (artificial irrigation) | 5% | Value × 0.05 |
| Agriculture (mixed irrigation) | 7.5% | Value × 0.075 |
| Minerals and buried treasure | 20% | Value × 0.20 |
Important Disclaimer
This calculator and guide provides approximate Zakat calculations based on general Islamic principles. Zakat rules can vary based on specific fiqh (Hanafi, Shafi, Maliki, Hanbali). For exact and personalized Zakat calculation, please consult a qualified Islamic scholar (Mufti) or your local religious authority.
References:
- Quran — Surah Al-Baqarah 2:267
- Quran — Surah At-Tawbah 9:60
- Sahih Bukhari — Book of Zakat
- Sahih Muslim — Book of Zakat