What Is Zakat?
Zakat (زکوٰۃ) is the third pillar of Islam — an obligatory annual payment of 2.5% on qualifying wealth that has been held for one full Islamic lunar year (Hawl) and exceeds the nisab threshold. It is distributed to the eight categories of recipients defined in the Quran (Surah At-Tawbah, 9:60).
Zakat purifies wealth and reduces inequality in the Muslim community. It is calculated once per year, typically in Ramadan, though the anniversary of reaching nisab is the precise timing.
What Is Nisab?
Nisab is the minimum wealth threshold above which Zakat becomes obligatory. There are two standards:
| Standard | Based On | Threshold (approx. 2025) |
|---|---|---|
| Silver Nisab | 612.36g of silver | PKR 80,000–100,000 |
| Gold Nisab | 87.48g (7.5 tola) of gold | PKR 1,800,000–2,000,000 |
Most contemporary scholars recommend using the silver nisab as it includes more people in the obligation and is closer to the intent of Zakat. However, you may follow the opinion of a scholar you trust.
What Wealth Is Zakatable?
✅ Included in Zakat
- Cash in hand and bank accounts (savings, current, fixed deposits)
- Gold and silver (at current market value)
- Business stock and inventory (at market value)
- Loans you have given to others (if recoverable)
- Investments and shares (at current market value)
- Rental income (on the day of calculation)
❌ Not Included in Zakat
- Your home (primary residence)
- Personal vehicle (for personal use)
- Household furniture and appliances
- Business equipment and machinery
- Debts you owe (deducted from total)
How Zakat Is Calculated
The formula is straightforward:
Net Zakatable Assets = Total Assets − Debts Owed
If Net Assets ≥ Nisab → Zakat = Net Assets × 2.5%
For example: Cash PKR 300,000 + Gold PKR 200,000 − Debt PKR 50,000 = PKR 450,000. Since 450,000 > Nisab (≈90,000): Zakat = 450,000 × 2.5% = PKR 11,250
Who Receives Zakat?
The Quran specifies eight categories (Surah 9:60):
| Category (Arabic) | Meaning |
|---|---|
| Fuqara (الفقراء) | The poor — those with little or nothing |
| Masakin (المساكين) | The needy — who do not beg openly |
| Amil (العاملين) | Zakat administrators |
| Mu'allafat (المؤلفة) | New Muslims needing support |
| Riqab (الرقاب) | Freeing those in bondage |
| Gharimin (الغارمين) | Those overwhelmed by debt |
| Fi Sabilillah (في سبيل الله) | For the cause of Allah |
| Ibn Sabil (ابن السبيل) | Travellers in need |
This calculator provides an estimate based on standard guidelines. Individual circumstances may differ. Please consult a qualified Islamic scholar (Mufti) for a fatwa specific to your situation, especially for complex cases like business assets, pensions, or property investments.