How zakat is calculated
Zakat is due once a year on wealth that has reached the nisab (the minimum amount) and stayed at or above it for one lunar year (the hawl). The rate is one fortieth, which is 2.5%.
Zakatable assets are cash, bank balances, gold, silver, goods you hold for sale, money owed to you that you expect to get back, and investments such as shares and funds. Your home, car, furniture, clothes and tools you use for work are not zakatable.
The nisab in tola and grams
The nisab comes from the hadith: 20 mithqal of gold or 200 dirhams of silver. In South Asia these are written in tola.
| Metal | Tola | Grams | Example price | Nisab in money |
|---|---|---|---|---|
| Gold (24K) | 7.5 | 87.48 | Rs 400,000 per tola | Rs 3,000,000 |
| Silver | 52.5 | 612.36 | Rs 9,600 per tola | Rs 504,000 |
The prices in the table are only examples. Gold and silver prices change every day, so the calculator asks you for today’s rate from your jeweller, the local sarafa association or your bank. It never fetches a price for you.
You will also see 85 g and 595 g on some websites. These use a slightly smaller mithqal (4.25 g instead of about 4.37 g). The difference is small, about 3%, and either figure is used in good faith.
Gold nisab or silver nisab?
Scholars have held both views for centuries, and this calculator lets you choose.
- Silver nisab. The Hanafi school, most scholars in Pakistan and India, and Pakistan’s own Zakat and Ushr Ordinance use silver for mixed wealth such as cash and savings. Because silver is now much cheaper than gold, this nisab is lower, so more people pay zakat and more reaches the poor. Many see it as the cautious choice.
- Gold nisab. Many contemporary scholars and Gulf institutions prefer gold, because the gold nisab has kept closer to the value it had in the Prophet’s time. Using silver today can make someone with modest savings liable.
- Only gold. If all your zakatable wealth is gold, with no cash or other assets, nearly all scholars, and Pakistan’s law, use the gold nisab of 7.5 tola.
Follow the opinion of the scholar or school you trust. The amount due is 2.5% either way; the choice only decides whether zakat is due at all.
Worked example
Ayesha in Lahore ends her zakat year with:
- Cash Rs 150,000 and bank savings Rs 600,000
- 3 tola of 22K gold jewellery, with 24K gold at Rs 400,000 per tola
- A Rs 50,000 credit card bill due this month
- Gold value: 3 tola × 22/24 × Rs 400,000 = Rs 1,100,000.
- Total assets: 150,000 + 600,000 + 1,100,000 = Rs 1,850,000.
- Net wealth after the bill: Rs 1,800,000.
- Silver nisab at Rs 9,600 per tola: 52.5 × 9,600 = Rs 504,000. She is above it.
- Zakat: 2.5% × Rs 1,800,000 = Rs 45,000.
With the gold nisab of Rs 3,000,000 she would owe nothing, because Rs 1,800,000 is below it. That is the practical difference between the two views.
Zakat deduction by banks in Pakistan
Under the Zakat and Ushr Ordinance, banks deduct 2.5% from savings and profit-and-loss accounts on 1 Ramadan when the balance is at or above the notified nisab. For 1447 AH (February 2026) the government notified a nisab of Rs 503,529, based on 52.5 tola of silver. Current accounts are not touched.
If you would rather pay zakat yourself, you can submit a zakat exemption declaration (form CZ-50) to your bank before Ramadan. If your bank has already deducted zakat, enter that amount in the calculator so it is not counted twice.
Tips and edge cases
- Pick one date each year. Many people use 1 Ramadan or the anniversary of the day their wealth first reached the nisab. Value everything on that day.
- Gold purity. Jewellery is usually valued by its gold content: weight × karat ÷ 24 × the 24K price. Some scholars prefer the price a jeweller would actually pay. Use the gold price calculator to check jewellery value and convert masha and ratti.
- Business stock is valued at its current selling price, not the price you paid.
- Loans you gave are included if you expect to get the money back. Doubtful debts can be left out until they are repaid.
- Long-term loans. Deduct only the part due now or in the coming months, not the whole balance of a home or car loan.
- Hijri year. Zakat follows the lunar year, which is about 11 days shorter than the solar year. Find your date with the Hijri date converter.
- Interest-bearing savings. Profit earned from interest (riba) should be given away without the intention of reward, and is not counted as zakat. You can work out returns with the compound interest calculator.
This calculator helps you plan. For personal questions, such as debts owed to family or shares in a company you run, ask a qualified scholar.