What Is the Zakat Calculator?
Zakat is one of the Five Pillars of Islam — a mandatory annual alms-giving of 2.5% on net zakatable wealth that has been held above the Nisab threshold for one full lunar year (Hawl). This calculator helps Muslims determine their Zakat obligation for 2026 based on their cash, gold, silver, business inventory, and investment holdings.
Nisab is the minimum threshold of wealth above which Zakat becomes obligatory. It is calculated as the value of either 85 grams of gold or 595 grams of silver — whichever is lower is typically used by contemporary scholars to ensure more people fulfill the obligation.
How to Use This Calculator
- Enter the total value of your cash and bank balances.
- Enter the market value of your gold and silver holdings (in PKR).
- Enter the value of your business inventory and receivables (trade goods you intend to sell).
- Enter the value of your shares and investment funds (market value of liquid investments).
- Click Calculate Zakat. The tool checks against the Nisab and calculates your 2.5% obligation.
Zakat Calculation Formula
Nisab (Gold): 85 grams × current gold price per gram
Nisab (Silver): 595 grams × current silver price per gram
If total wealth ≥ Nisab:
Zakat Payable = Total Zakatable Wealth × 2.5%
Worked Example
Gold price: PKR 25,000/gram. Nisab (gold) = 85 × 25,000 = PKR 2,125,000
A person has: cash PKR 1,800,000 + gold value PKR 750,000 + business inventory PKR 400,000 = Total: PKR 2,950,000
- Above Nisab? Yes (PKR 2,950,000 > PKR 2,125,000)
- Zakat due: 2,950,000 × 2.5% = PKR 73,750
What Is and Isn’t Zakatable
Zakatable assets include: Cash, bank balances, gold, silver, trading inventory, receivable debts owed to you, liquid investments (shares, mutual funds).
NOT zakatable: Your primary residence, personal car, household goods, tools of trade, retirement savings in illiquid funds, and debts you owe to others (deducted from your total).
Common Mistakes to Avoid
- Not deducting liabilities: Debts you owe (rent due, loans, bills) can be deducted from your total zakatable wealth before applying the 2.5% rate. Many people calculate Zakat on gross assets, potentially overpaying.
- Using gold Nisab when silver threshold is lower: The silver Nisab is often much lower in PKR value than gold, meaning it is stricter. Using the lower of the two ensures you fulfill the obligation correctly according to most scholarly opinion.
- Paying Zakat on illiquid property investments: Land held for personal use is not zakatable. Land bought specifically for resale (trading intent) is zakatable. The intent matters.
Accuracy Notes
Nisab thresholds in PKR change daily with gold and silver prices. The rates used in this calculator are reference figures for 2026 — check current gold prices from the Karachi or international market before finalizing your calculation. Scholars differ on some zakatable asset categories; consult your Islamic scholar for personal guidance on complex situations such as pension funds, cryptocurrency, and business partnership stakes.
Frequently Asked Questions
When should I pay Zakat?
Zakat is due once a lunar year (Hawl) passes on wealth that has remained above Nisab. Many Muslims choose to pay during Ramadan for the extra spiritual reward, but it can be paid any time once the Hawl completes.
Is Zakat paid on my monthly salary?
Salary income itself is not directly zakatable at the moment of receipt. However, any portion of your salary that remains saved at the end of your Zakat year, combined with other savings, is included in your total zakatable wealth assessment.
Are shares in the stock market zakatable?
Yes, liquid shares held for trading or as long-term investment are generally zakatable. Most scholars recommend paying Zakat on the market value of your portfolio as of your Zakat date. For shares in compliant Islamic companies, more nuanced calculations apply based on the company’s underlying zakatable assets.
Does EOBI pension count as zakatable wealth?
Accumulated pension savings in a fund you do not control are not generally zakatable until received. Upon retirement and receipt of the pension balance, Zakat would apply on the received amount if above Nisab and held for a year.
📅 Last Updated: April 2026
📋 Based on Hanafi jurisprudence and contemporary scholarly consensus on Zakat