I have some savings but no idea how zakat works. How do I calculate what I owe?
The short answer: if your qualifying savings have stayed at or above the nisab threshold for a full lunar year, you owe 2.5% of them as zakat. The three steps below make it simple — what counts, how to find the threshold, and how to pay.
Step 1 — Work out what counts. Add up your cash, bank balances, gold and silver, and the value of investments or shares you could sell — then subtract what you genuinely owe in debts. Only this net amount is considered for zakat.
Step 2 — Check the nisab threshold. Nisab is the minimum amount that makes zakat due, classically measured by the value of a certain weight of gold or silver. Because silver's price is far lower than gold's today, the silver-based threshold is the lower one — and many scholars recommend it, since it means more people qualify to purify their wealth. Check the current value with a local scholar or a reliable zakat calculator.
Step 3 — Check the full lunar year. Zakat becomes due when your net qualifying wealth has stayed at or above nisab for a full lunar (hijri) year. Then calculate 2.5% of the total — for example, on savings worth one hundred thousand, zakat is two thousand five hundred. Pay it to eligible recipients: the poor, the needy, and the other categories described in Islamic teaching, preferably locally where you can see the impact.
A gentle note on scholarly differences: scholars agree on the 2.5% rate and the lunar-year principle, but differ gently on some details — for instance, which nisab measure to use, how to value pensions or goods held for trade, and which assets count at all (your own home and the car you use do not). These differences are normal and handled with mutual respect among scholars.
Verified-source note: the 2.5% rate above the nisab and the lunar-year rule are established Islamic teachings, widely taught by scholars and zakat authorities. This guide is original educational wording — not copied from any fatwa website. Currency values change, so confirm the current nisab figure locally.
Disclaimer: This is general educational guidance. For your personal situation — especially with business assets, debts, or mixed investments — please consult a trusted local scholar.
General guidance based on the established Islamic duty of zakat: 2.5% of qualifying wealth above the nisab after a full lunar year. Written in our own words as general education, not a copied fatwa. Confirm personal details with a qualified local scholar.