How do I calculate my zakat?

Add up your zakatable assets, subtract debts due now, and pay 2.5% if the total is above the nisab. Do this once a year on a fixed date. Zakatable assets are things like cash, savings, gold, silver, investments and business stock, not your home, car or personal belongings.

Step 1: Pick your zakat date

Your zakat year is one lunar year (about 354 days) from when your wealth first reached the nisab. Many people choose a memorable date, like the start of Ramadan, and stick to it. See When do I have to pay zakat?

Step 2: Add up what's zakatable

Cash: at home and in all bank accounts (leave out interest earned).
Gold and silver: at today's value. Worn jewelry is debated; see Do I pay zakat on gold jewelry I wear?
Investments: stocks, funds, crypto. See Do I pay zakat on stocks?
Business: stock for sale, business cash, money customers owe.
Money owed to you that you expect to get back.

Step 3: Subtract what you owe now

Many scholars let you subtract debts due now or within the coming year, like an unpaid bill, this year's loan installments or rent due. Most don't let you subtract the whole remaining balance of a mortgage or student loan. Scholars differ on this, so see Do I have to pay zakat if I have debt?

Step 4: Check the nisab and pay 2.5%

If the total is at or above the nisab (the value of about 85 g of gold or 595 g of silver), pay 2.5% of the whole amount, which is the same as dividing by 40. The Prophet Muhammad ﷺ said that on 200 dirhams held for a year, five dirhams are due (Sunan Abi Dawud 1573). That's exactly 2.5%.

خُذْ مِنْ أَمْوَٰلِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِم بِهَا وَصَلِّ عَلَيْهِمْ ۖ إِنَّ صَلَوٰتَكَ سَكَنٌ لَّهُمْ ۗ وَٱللَّهُ سَمِيعٌ عَلِيمٌ "Take, [O Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah's blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing." Quran 9:103

A worked example

Sarah has €6,000 in savings, €1,500 in a stocks app and a €500 credit card bill due this month. €6,000 + €1,500 − €500 = €7,000. That's above the nisab, so her zakat is €7,000 × 2.5% = €175.

Key points

Calculate once a year on a fixed date.
Add cash, gold, silver, investments and business assets.
Subtract debts due now.
Pay 2.5% if you're above the nisab.

Tip: Use a zakat calculator from a reputable Muslim charity for your first year, then save your numbers in a simple spreadsheet. Next year takes ten minutes.