Zakat
How to Calculate Zakat on Savings and Salary
Zakat is 2.5% of your net zakatable wealth — cash, gold, silver, investments, and money owed to you, minus debts you owe — provided that total is at or above the nisab threshold (roughly the value of 85g of gold or 595g of silver) and has been held for one lunar year. Salary isn't taxed as it arrives; it becomes zakatable once it accumulates into savings above nisab.
This is a practical, non-religious guide to the calculation. It is not a fatwa. Zakat rulings differ between scholars and schools of thought — for your exact obligation, confirm with a qualified scholar.
The four things you need
- Your zakatable wealth — see the list below.
- Your debts — amounts you owe that are deductible.
- The current gold or silver price — to work out nisab in your local currency.
- Whether a lunar year has passed — Zakat is due on wealth held for roughly a Hijri year, not a snapshot of today's balance alone.
What counts as zakatable wealth
| Include | Exclude |
|---|---|
| Cash on hand and in bank accounts | Your home (primary residence) |
| Gold and silver you own | Your car |
| Investments (stocks, funds, business assets) | Personal-use items — furniture, electronics, clothing |
| Money owed to you that you expect to recover | Wealth held for less than a lunar year |
What you can deduct
Subtract debts genuinely due — money you owe and are expected to repay in the near term. What remains is your net zakatable wealth.
The nisab threshold
You only owe Zakat if your net zakatable wealth is at or above nisab. Two standards are commonly used:
| Standard | Weight | Notes |
|---|---|---|
| Gold | ~85g (some scholars: up to 87.48g) | Higher value, fewer people meet it |
| Silver | ~595g (some scholars: up to 612.36g) | Lower value — many scholars recommend it, since more people then qualify to give, meaning more Zakat reaches those in need |
Take the weight, multiply by today's price per gram in your currency, and that's your nisab value. If your net zakatable wealth is at or above it, Zakat is due.
Worked example
Say someone in the UAE has:
- AED 45,000 in savings
- AED 8,000 worth of gold jewelry held as savings (not everyday personal wear, per their own scholar's guidance)
- AED 3,000 owed to them by a friend, expected back
- AED 6,000 in credit card and personal debt
Net zakatable wealth: 45,000 + 8,000 + 3,000 − 6,000 = AED 50,000.
Using the silver standard, illustratively at AED 3.00/gram: nisab = 595 × 3.00 = AED 1,785. (Check today's actual silver or gold price — it moves daily.) Since AED 50,000 is well above AED 1,785, Zakat is due:
50,000 × 2.5% = AED 1,250.
Frequently asked
What percentage is Zakat on savings?
2.5% (one fortieth) of net zakatable wealth, once it's at or above nisab and held for a lunar year.
What is nisab?
The minimum wealth threshold before Zakat applies — commonly the value of ~85g of gold or ~595g of silver at current prices (figures vary slightly by scholar).
Gold or silver nisab — which should I use?
Both are valid; it's a choice between you and your scholar. The silver nisab is lower, so many scholars recommend it — more people end up qualifying to give.
Do I pay Zakat directly on my salary?
No — Zakat applies to wealth you hold and retain above nisab for a lunar year, not to income the moment it's earned.
Doing this by hand every year is tedious. Budget Tracker has this exact calculation built in — enter your cash, gold, silver, investments and debts, pick a nisab standard, and it shows what's due. It's free, and your numbers never leave your phone.