What is Zakat?
Zakat is an obligatory charity in Islam. It is due on eligible wealth when a Muslim owns wealth above the Nisab threshold and the Hawl condition is met. Hawl means the wealth has remained above Nisab for one lunar year. Zakat is not only a donation. It is a religious duty connected with wealth purification and social support.
Who must pay Zakat?
A person may need to pay Zakat when net zakatable wealth reaches or exceeds Nisab and remains there for one lunar year. Net wealth means zakatable assets minus deductible liabilities. This is why a correct Zakat calculator must show eligibility, not only a number.
What is Nisab?
Nisab is the minimum wealth threshold for Zakat. This calculator uses 85 grams of gold and 595 grams of silver, as requested. Some references use slightly different weights, such as 87.48 grams gold and 612.36 grams silver. You can update the gold and silver rates manually to match your market.
India-specific Nisab example
If gold is ₹6500 per gram, gold Nisab is ₹5,52,500. If silver is ₹85 per gram, silver Nisab is ₹50,575. Many people use the lower Nisab to support more giving, but you should follow the guidance of a qualified scholar or trusted local authority.
How to calculate Zakat
The formula is: Zakat = (Total zakatable assets – liabilities) × 2.5%. Add cash, bank balance, gold value, silver value, investments and business inventory. Subtract eligible debts and immediate liabilities. Then compare net wealth with Nisab. If net wealth is above Nisab and Hawl is complete, Zakat is obligatory.
Assets included in Zakat
- Cash in hand and bank accounts.
- Gold and silver value.
- Stocks, mutual funds and liquid investments.
- Business inventory and trade goods.
- Receivables likely to be collected.
Assets usually not included
- The house you live in.
- Personal car and daily-use items.
- Clothes, furniture and household items.
- Business equipment not held for sale.
Real example
Total assets = ₹6,00,000. Liabilities = ₹1,00,000. Net zakatable wealth = ₹5,00,000. If the selected Nisab threshold is below ₹5,00,000 and Hawl is complete, Zakat is ₹12,500. The correct decision is: Zakat is obligatory because wealth exceeds Nisab.
Common mistakes
- Calculating 2.5% without checking Nisab.
- Ignoring the Hawl rule.
- Counting personal-use items that are usually not zakatable.
- Forgetting investments or business inventory.
- Not asking a scholar for complex jewelry, debt or business cases.
Why this tool is different
Many basic calculators only multiply by 2.5%. This version checks net wealth, gold Nisab, silver Nisab, Hawl, liabilities and asset categories. It also explains the decision in plain language so users know whether Zakat is obligatory or not required.
