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The math

How to Calculate Zakat

A practical calculation flow for ordinary cash, savings, gold, silver, and investments.

The basic Zakat rate is simple: 2.5 percent of zakatable wealth once the conditions are met.

The hard part is usually identifying the right assets, the right date, and the right intention.

Step 1: Choose your Zakat date

Use the Hijri date when your wealth first reached nisab. That becomes your yearly Zakat date.

Many people pay in Ramadan, and that is fine if it is on time or early. But Ramadan is not automatically everyone's due date.

Step 2: Add zakatable assets

Add cash, bank balances, gold, silver, trade inventory, and zakatable investments at their current value on your Zakat date.

For business stock, use the sale value of goods held for trade, not the original purchase price if the current value is different.

Step 3: Account for immediate liabilities

Scholars differ on how debts affect Zakat. A common practical approach is to subtract immediate payments that are due now or within the near term, not every long-term obligation.

Because this area has detail, do not rely on a generic rule for mortgages, business debt, tuition, or large loans without asking someone qualified.

Step 4: Pay 2.5 percent

If the remaining zakatable wealth is at or above nisab, pay 2.5 percent.

Example: if your zakatable wealth is $10,000, Zakat is $250.

Step 5: Record what you did

Keep a simple note with the Hijri date, assets included, amount paid, and where it was sent.

That protects you from confusion next year and keeps general charity separate from Zakat.

Practical checklist

  • Use a Hijri Zakat date.
  • Value assets on that date.
  • Calculate 2.5 percent after eligible deductions.
  • Record the payment and recipient.

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