Zakat is not just a religious obligation. It is a way to purify your wealth, help those in need, and build a fairer society. Every Muslim who meets the conditions of Zakat must calculate and pay it once a year. But if you are not sure how to work out what you owe, you are not alone.
This page is here to help. We will explain everything step by step, including what to include, what to subtract, and how to find out if you even need to pay Zakat this year. At the bottom, we have linked a reliable Zakat calculator you can use today while we build our own.
“Whoever pays the Zakat on his wealth will have its evil removed from him.”
(Sahih Ibn Khuzaymah)
Zakat does not reduce your wealth. It purifies it, protects it, and increases your blessings in ways you may not see immediately.
What is Zakat?
Zakat is a fixed portion of your wealth that you give to those in need. It is usually 2.5 percent of your total qualifying assets if you have held them for one lunar year and they are above the minimum threshold known as Nisab.
Think of it like a spiritual tax, except it goes straight to those who need it most.
Who Needs to Pay Zakat?
You must pay Zakat if:
- You are Muslim
- You are an adult and of sound mind
- You have held qualifying wealth for one lunar year
- Your total wealth is above the Nisab threshold
What is the Nisab?
Nisab is the minimum amount of wealth a person must own before Zakat becomes obligatory. It is based on the value of either:
- 87.5 grams of gold
- 612.36 grams of silver
As of now, the silver Nisab is around £350 to £400 but this changes often. Gold is usually much higher, around £4500 to £5000. Most scholars recommend using silver to include more people and help more recipients.
You can check the current Nisab values here:
👉 National Zakat Foundation – Current Nisab Value
What Do I Pay Zakat On?
You must include the following assets in your Zakat calculation:
✅ Zakatable Assets
| Asset Type | Examples |
|---|---|
| Cash | Savings, current accounts, digital wallets, PayPal, foreign currency |
| Gold and Silver | Jewellery, bars, coins |
| Business Assets | Inventory, trade goods, cash in business account |
| Investments | Stocks, shares, ISAs, crypto, accessible pensions |
| Rental Income | Saved rent income, not the value of the property |
| Receivables | Money owed to you that you expect to receive |
What Can I Subtract?
Before calculating 2.5 percent, you can deduct your immediate debts and liabilities. These include:
- Rent or utility bills due soon
- Credit card balances due now
- Business debts due in the next 12 months
- Money you owe others that must be paid shortly
You cannot subtract long-term debts like your mortgage or student loan.
How to Calculate Your Zakat in 5 Steps
Step 1
Add up all your Zakatable assets
Step 2
Deduct any immediate debts or bills
Step 3
Check if your remaining amount is above the Nisab threshold
Step 4
If yes, multiply it by 2.5 percent to find out how much you owe
Step 5
Pay your Zakat to eligible recipients or a trusted charity
Simple Example
Let us say Ash has the following assets:
- £4000 in savings
- £500 in gold jewellery
- £600 in a stocks and shares ISA
- £200 owed to her by a friend
- £800 in bills due soon
Total assets = £5300
Minus debts = £800
Zakatable amount = £4500
Zakat = 2.5 percent of £4500 = £112.50
When Should I Calculate Zakat?
Zakat is due once a year on your Zakat anniversary. This is the same date every year based on the Islamic lunar calendar. Many people choose Ramadan because the reward is multiplied and it is easier to remember.
If your wealth dips below Nisab during the year but goes back up by your anniversary, you still pay. Only if your wealth stays below Nisab for the entire lunar year are you exempt.
What If I Missed Zakat?
Zakat is not cancelled if you forgot or missed it. You must still go back, estimate the missed years, and pay what is due. If you are unsure, estimate carefully and make sincere intention. You can also top up your payment just in case.
Can I Pay Zakat Monthly?
Yes. Many people now set up a monthly direct debit for Zakat, especially if they are on a salary. Just make sure you calculate your total correctly each year and top up if needed.
Monthly giving helps spread the impact across the year and keeps your heart connected to regular charity.
Zakat and Sadaqah: What is the Difference?
| Zakat | Sadaqah |
|---|---|
| Obligatory | Voluntary |
| Fixed 2.5 percent | Any amount |
| Only for eligible recipients | Can be given to anyone |
| Paid annually | Can be given anytime |
| Requires Nisab | No conditions |
You cannot replace Zakat with Sadaqah. Both are valuable, but Zakat is a duty.
Use This Trusted Zakat Calculator
Until we launch our own integrated Halaal Zakat Calculator, we recommend this trusted UK-based tool:
👉 Use the NZF Zakat Calculator
It is user-friendly and based on UK market prices. Make sure to keep your records and double-check before making a payment.