How to Calculate Zakat on Money, Gold, and Investments - Complete 2026 Guide

Zakat is the third pillar of Islam and a fundamental purification of wealth. Yet many Muslims aren't sure how to calculate it correctly, especially with modern assets like stocks, crypto, and business inventory. This guide covers everything.

The Golden Rule: 2.5%

The base zakat rate is 2.5% (or 1/40) of your zakatable wealth held for one lunar (Hijri) year, provided it exceeds the nisab threshold.

What is Nisab?

Nisab is the minimum wealth threshold below which no zakat is due. Two standards:

• Gold nisab: 85 grams of pure gold
• Silver nisab: 595 grams of pure silver

At 2026 prices, gold nisab ≈ 25,000-30,000 SAR (varies daily). Most scholars recommend using the lower (silver) nisab for the benefit of the poor.

What Wealth is Zakatable?

• Cash (savings, current accounts, digital wallets)
• Gold and silver (jewelry included per some scholars)
• Investment stocks and mutual funds
• Business inventory (at wholesale value)
• Trade goods intended for sale
• Cryptocurrency (per most contemporary scholars)
• Loans owed to you (with reasonable expectation of return)

What is NOT Zakatable?

• Your primary residence
• Personal-use vehicles
• Household furniture and clothes
• Business fixed assets (equipment, buildings)

Worked Example

Ahmed's zakat check on 1 Muharram 1447:

• Bank savings: 50,000 SAR
• Gold jewelry (100g): ~30,000 SAR
• Stocks: 20,000 SAR
• Personal loans owed to him: 5,000 SAR
• Debts he owes to others: −10,000 SAR

Zakatable total = 95,000 SAR (above nisab)

Zakat due = 95,000 × 2.5% = 2,375 SAR

The Hawl (One-Year Rule)

Wealth must be held for one full lunar year to trigger zakat. Choose a consistent Hijri date each year (e.g., 1st of Ramadan) to make it easier.

Business Zakat

Businesses pay zakat on:

1. Cash on hand and in banks
2. Trade inventory (at current market value)
3. Accounts receivable (that are likely to be collected)
4. Minus current liabilities and short-term debts

ZATCA and Corporate Zakat

In Saudi Arabia, registered businesses file zakat annually with ZATCA. The formula is more complex than personal zakat but follows the same 2.5% principle on net zakatable assets.

Free Zakat Calculator

Our free zakat calculator handles all categories in one form.

FAQ

Do I pay zakat on my salary?

Not immediately — only if it stays in your account for a full lunar year.

Zakat on gold jewelry — is it required?

Scholars differ. The safer opinion is yes, on gold above nisab weight.

What about crypto?

Most contemporary scholars treat it like cash — zakatable if above nisab for one year.

Track Your Zakat with Daqiq

Daqiq gives you real-time balance sheets so calculating annual business zakat takes minutes, not weeks.