How Zakat is calculated
Zakat is one of the five pillars of Islam. It is an annual payment of 2.5% of your qualifying wealth, due once that wealth has stayed at or above a minimum threshold for a full lunar year. Three things decide the amount: what counts as wealth, where the nisab threshold sits, and whether you have held the wealth for one lunar year (hawl).
What counts as zakatable wealth
Zakat is due on wealth that grows, or could grow. It is not due on what you use day to day. As a general rule:
| Zakatable | Not zakatable |
|---|
| Cash in hand and in bank accounts | Your home you live in |
| Gold and silver | Personal car and household items |
| Shares, mutual funds, savings certificates (market value) | Tools and machinery of your trade |
| Business stock-in-trade and recoverable receivables | Clothing and personal effects |
From that total you deduct debts that are due, and what is left is your net zakatable wealth. Some rulings vary between scholars (long-term shares versus trading shares is the common example), so treat the calculator as a starting point rather than the last word.
The nisab: gold vs silver
The nisab is the minimum net wealth at which Zakat becomes obligatory. It is fixed as a weight of precious metal, which you then convert to rupees at today's price:
- Gold nisab: 87.48 grams (7.5 tola)
- Silver nisab: 612.36 grams (52.5 tola)
Silver is far cheaper per gram, so the silver nisab works out much lower in rupees. Use it and Zakat falls due on smaller wealth, which means more of the needy benefit. Many scholars recommend the silver nisab for that reason, especially when you hold a mix of cash and assets rather than gold alone. The calculator lets you choose either and enter the current price.
The lunar year (hawl)
Zakat is due once your zakatable wealth has stayed at or above the nisab for one full lunar year. You calculate it on the wealth you hold on that anniversary date, not on income as it trickles in through the year. Most Pakistanis just pay during Ramadan: the reward is greater, and a fixed annual date is easy to track.
A note for investors
Hold PSX shares, mutual funds or savings certificates? Their market value on your Zakat date counts as zakatable wealth. With the KSE-100 near 181,000 and funds like NBP Islamic Stock up 42.2% over the past year, a portfolio can move a lot between two Zakat dates, so value it on the day itself rather than going off last year's figure. Zakat is separate from income tax: tax is charged on income you earn, Zakat on wealth you hold. For Shariah-compliant ways to invest, see our halal investing guide.
To sum up: Zakat is 2.5% of net zakatable wealth (cash, gold, silver, investments and business assets, minus debts) once it has sat at or above the nisab for a lunar year. The silver nisab captures more wealth than the gold one. Use today's metal price so the threshold is accurate, and check any ruling you are unsure about with a scholar you trust.
Frequently asked questions
How much is Zakat in Pakistan?
Zakat is 2.5% of your net zakatable wealth, payable once each lunar year if that wealth is at or above the nisab. Zakatable wealth includes cash and bank balances, gold and silver, investments such as shares and mutual funds at market value, and business stock and receivables, minus debts that are due. For example, on Rs 4,000,000 of net zakatable wealth above the nisab, Zakat is Rs 100,000.
What is the nisab for Zakat, and should I use gold or silver?
The nisab is the minimum wealth at which Zakat becomes due: the value of 87.48 grams (7.5 tola) of gold, or 612.36 grams (52.5 tola) of silver. The silver nisab is much lower in rupee terms, so using it means more people pay Zakat and more of the needy benefit - many scholars recommend the silver nisab for that reason, especially if you hold mixed assets. Use the current market price of the metal to convert the nisab into rupees.
Which assets are zakatable in Pakistan?
Zakat is generally due on cash in hand and in bank accounts, gold and silver, money lent out that you expect back, the market value of shares and mutual funds and savings certificates, and business stock-in-trade. Your own home, personal car, household items and tools of your trade are normally not zakatable. Outstanding debts you owe can be deducted. Rulings on some items, such as shares held long-term, vary between scholars.
When is Zakat due?
Zakat falls due once your zakatable wealth has stayed at or above the nisab for one full lunar year (hawl). Many Pakistanis choose to pay during Ramadan for the extra reward and to make the date easy to remember, but it can be paid whenever your lunar year completes. You calculate it on the wealth you hold on that date, not on income as it arrives.
Is Zakat calculated on my whole savings or only the growth?
Zakat is calculated on the whole zakatable amount you hold at the end of the lunar year, not just the profit or growth. So if you hold Rs 2,000,000 in cash and investments above the nisab, Zakat is 2.5% of the full Rs 2,000,000, regardless of how much it grew during the year. This is different from income tax, which is charged on income earned.
Does the bank deducting Zakat mean I have paid all my Zakat?
Banks in Pakistan deduct Zakat on certain savings and deposit accounts around Ramadan under the Zakat and Ushr system, but that deduction usually covers only those specific account balances. Cash held outside the banking system, gold and silver, shares, and business assets are generally not covered by the bank deduction, so Zakat on them may still be due. The exact rules and any exemption process (such as filing a declaration) can change, so verify the current position with your bank or the relevant authority.
Do I pay Zakat on money I have lent to someone or on a loan I owe?
Money you have lent out and reasonably expect to get back is generally treated as part of your zakatable wealth. Debts that you owe and are due can usually be deducted from your zakatable wealth before applying the 2.5% rate. Treatment of long-term or doubtful loans can differ between scholars, so check the ruling that applies to your situation.
Is there Zakat on property, plots, or my house?
The house you live in and property kept for personal use are normally not zakatable. A plot or property bought with the clear intention of resale is often treated as trade goods, so its market value can be zakatable, while property held to earn rent is usually not zakatable on its capital value, though the rental income saved may be. Scholars differ on some of these cases, so confirm the ruling for your specific intention and use.
Is Zakat the same as paying income tax to FBR?
No. Zakat is a religious obligation calculated at 2.5% on accumulated zakatable wealth held for a full lunar year, while income tax is a government levy charged on income you earn during a tax year. Paying one does not remove the obligation of the other, and they are calculated on different bases. For income tax rules, slabs, and filing, verify the current details on fbr.gov.pk.
Can I give my Zakat to my own relatives?
Zakat can generally be given to eligible relatives who are not among your direct dependents that you are already obliged to support, such as your spouse, parents, or minor children. Eligible recipients are those who meet the conditions for receiving Zakat, for example needy family members who fall below the nisab. Because views on specific relationships vary, it is best to confirm eligibility with a knowledgeable scholar.
This calculator is for educational purposes only and is not a religious ruling or financial advice. It applies the common 2.5% rate and standard nisab weights. Scholarly opinions differ on what is zakatable, which nisab to use, and how to treat certain assets such as long-term shares, pensions and jointly-held wealth. Metal prices change daily, so enter the current rate. Consult a qualified scholar, and where relevant a financial adviser, for your specific situation before paying.
