Zakat Calculator

How zakat is calculated

Zakat is due at a flat 2.5% (1/40) of your net zakatable wealth once you have held it above the nisab threshold for one full lunar year (hawl) of continuous possession. The lunar year (hawl) of continuous possession above nisab.

Net zakatable wealth = total zakatable assets minus deductible short-term debts. If that figure is at or above the nisab you have chosen, zakat due = net wealth × 2.5%. For example, £18,000 in assets minus £2,000 in deductible debts leaves £16,000 net wealth — zakat due is £400.00 (£16,000 × 2.5%), regardless of which nisab you use, since it's above both thresholds.

The nisab: gold vs silver

The nisab is set at the value of 87.48g of gold OR 612.36g of silver — a Prophetic standard that hasn't changed, but whose £ value moves with the gold/silver price. As of 2026-07-09: gold nisab = £8,545.05, silver nisab = £852.08 — roughly a 10× gap, because gold and silver spot prices move independently.

Gold and silver spot prices move independently, so the two nisab thresholds in GBP diverge (as of 2026-07-09, silver nisab GBP852.08 vs gold nisab GBP8545.05 - roughly a 10x gap). Because the silver threshold is almost always far lower than the gold threshold, using silver captures far more people into zakat liability and channels more charity to the poor; using gold sets a higher bar and is argued by some scholars to better reflect genuine financial stability in a modern economy.

Here's the divergence in numbers: someone with £4,000 net wealth is above the silver nisab (£852.10) but below the gold nisab (£8,545.05). Using silver — the recommendation of Islamic Relief UK and most charities — zakat due is £100.00. Using gold, zakat due is £0.00. Neither answer is "wrong" — it depends which nisab you and your scholar/charity use, which is why the calculator shows both.

Islamic Relief UK: Advises donors to use the SILVER nisab value 'because this allows for a greater amount to be given to those in need' - it is almost always the lower threshold. (captured 2026-07-09).

Islamic Relief (global): Notes some scholars prefer silver (increases charity distributed), others prefer gold (closer to [preserving wealth-holder status]); presents both as legitimate positions. (captured 2026-07-09).

National Zakat Foundation (NZF): Conditional rule: if you ONLY hold gold as an asset, use the gold nisab; if you hold a MIX of assets (cash, silver, gold, investments etc.), use the silver nisab. (captured 2026-07-09).

IF Charity (ifcharity.org.uk): Using the gold nisab reduces the amount collected/distributed to the poor - recommends silver nisab instead. (captured 2026-07-09).

SeekersGuidance: Notes some scholars argue for the gold threshold due to [inflation/store-of-value reasoning]; presents this as a live scholarly debate, not a settled UK-charity consensus. (captured 2026-07-09).

What counts as zakatable — and what doesn't

Zakatable: Cash held at home and in bank accounts; Other savings; Gold and silver; Investments and share values; Money owed to you that you expect to be repaid; Business stock/inventory value; Cryptocurrency; Pensions.

Not zakatable: Primary residence (home you live in); Personal-use car; Personal-use items and household goods (items of use, not investment/resale); Debts owed by others that you do NOT realistically expect to be repaid.

Jewellery treatment varies by school of thought — most UK charity calculators zakat all gold/silver (including worn jewellery), while some schools exempt items in personal use. If you're unsure, ask your local scholar or charity; this calculator zakats all gold/silver you enter, matching the majority UK-charity approach.

Cryptocurrency is confirmed zakatable at market value on your zakat anniversary date by both Islamic Relief UK and the National Zakat Foundation, once nisab is met — NZF explicitly accepts BTC/ETH donations directly. Pension treatment depends on access and vesting; UK charity sites don't give one uniform rule, so this is one to confirm with your own scholar.

Deductible debts (riba is never deductible)

Deductible: Debts that must be paid off within the next 12 months; Up to 12 months' worth of instalments on longer-term debts (e.g. mortgage, student loan) - only the portion due/overdue within the year; Arrears and/or overdue payments; Tax that is due or overdue (income tax, etc. once it has fallen due); Money already set aside specifically to pay a tax bill that is due.

Not deductible: Expenses/bills not yet due; Debt not payable within the next 12 months; Interest/riba payments on debt (cannot be deducted since riba itself is impermissible); Ordinary personal taxes (income tax, road tax) in general, except the due/overdue portion noted above. In particular, interest/riba payments cannot be deducted — since riba itself is impermissible, it isn't treated as a legitimate deduction from zakatable wealth.

Worked example: £700 cash-only, no debts — since it's below even the lower (silver) nisab of £852.10, zakat due is £0.00 under either threshold.