Everything you need to calculate zakat correctly in 2026
Zakat is one of the five pillars of Islam — an annual transfer of 2.5% of qualifying wealth from those who can afford it to those who cannot. The calculator above does the arithmetic. The sections below explain every input, every threshold and the scholarly positions that shape them, so you can give with confidence rather than guesswork.
What is zakat?
Zakat is a fixed-percentage charity owed once each lunar year on wealth that has been held above the nisab threshold for twelve consecutive lunar months. It is distinct from sadaqah (voluntary giving) and waqf (perpetual endowment), and the obligation is binding on every adult Muslim who meets the threshold. The Quran groups zakat with prayer in eighty-two separate places, signalling its weight inside the faith.
The recipients are specified in Surah At-Tawbah, verse 60: the poor, the needy, those employed to administer the funds, those whose hearts are to be reconciled, captives, debtors, those in the path of Allah, and the wayfarer. AmalQ campaigns tagged as zakat are reviewed against these eight categories before they accept zakat funds.
Who must pay zakat?
Zakat is obligatory on a Muslim who is sane, free, and whose qualifying wealth exceeds the nisab threshold for one full lunar year. There is no minimum age in the Hanafi and Maliki traditions for adults; the Shafi and Hanbali schools require the wealth holder to have reached puberty. Wealth held by minors is typically zakatable through the guardian in the schools where it applies.
Wealth that "passes through" your account during the year — for example a salary spent on bills the same month — is not zakatable. What matters is what sits above the nisab on your zakat anniversary date, which is the date you first crossed the nisab and have remained above it since.
What is nisab in 2026?
Nisab is the minimum threshold of wealth a Muslim must hold before zakat becomes due. Two scriptural benchmarks exist: 87.48 grams of gold or 612.36 grams of silver, derived from prophetic narrations and preserved across all four Sunni schools. The cash value shifts daily as metal prices move. Verified figures for early 2026:
- Silver nisab: approximately £550 / $1,600 / €635.
- Gold nisab: approximately £5,740 / $7,100 / €6,750.
The National Zakat Foundation, Islamic Relief and most UK fatwa councils now default to silver. The reasoning is practical: silver is the lower threshold, captures more wealth for charity, and a holder of £600 in cash today is meaningfully above subsistence even though they sit well below the gold figure. For a deeper breakdown, see our guide on nisab in 2026.
How to calculate zakat step by step
- Pick your zakat anniversary date. If this is your first time, today is your anniversary. Note it down — you will use it every year.
- List every zakatable asset. Cash on hand, current and savings accounts, cash ISAs, gold and silver at market value, the equity portion of stocks, crypto at spot, business inventory and receivables.
- Subtract your immediate liabilities. Bills due in the next thirty days, the immediately payable portion of credit-card and loan balances, business creditors. Long-term debts like a 25-year mortgage are not deductible in full — only the upcoming twelve months' instalments are typically deducted, and many scholars exclude mortgages entirely. The calculator above keeps things simple: deduct what you genuinely owe right now.
- Compare against nisab. If your net zakatable wealth is at or above the silver (or gold, depending on your basis) nisab, zakat is due.
- Multiply by 2.5%. The resulting figure is your zakat for the year.
- Pay it within a reasonable window. Most scholars recommend paying on or shortly after your anniversary date. Many UK Muslims align their anniversary with Ramadan to compound the reward of the month.
Step-by-step examples with worked calculations live in our UK zakat calculation guide.
Zakat on different asset types
Not all wealth is treated the same. Cash, gold and silver are zakatable in full at their current market value. Investment property and your primary residence are not zakatable; rental income held as cash on the anniversary date is. Equities held for capital growth follow either a "zakatable assets ratio" approach (most precise) or a 25% conservative default. Workplace pensions sit in the most-debated category — the contemporary majority position is that the equity portion you can access (taking early-exit penalties into account) is zakatable, and defined-benefit schemes are generally excluded.
For a full asset-by-asset walkthrough including jewellery (worn vs stored), business stock and ISAs, see zakat on gold, silver, savings and investments. For pensions, SIPPs, individual stocks, crypto and NFTs, see zakat on pension, shares and crypto.
Common mistakes to avoid
- Forgetting the lunar year. Zakat tracks the Islamic calendar, not the Gregorian one. The Hijri year is roughly 11 days shorter, so your anniversary drifts forward annually if you measure in Gregorian dates.
- Deducting mortgages in full. The widely-held position is to deduct only your upcoming twelve months of mortgage payments — not the full outstanding balance.
- Using outdated nisab values. Metal prices move. A figure cached from two years ago can mislead in either direction. Refresh annually at minimum.
- Excluding crypto. Crypto is treated as zakatable wealth at its spot value on the anniversary date. The 2026 consensus on this is firmer than it was even three years ago.
- Treating zakat as discretionary. Zakat is a debt to Allah and to the eight prescribed recipient categories. It is not the same as voluntary sadaqah. See sadaqah vs zakat vs waqf for the distinction.
When to pay — lunar year vs solar year
The zakat year is one full lunar year (354 days). If you measure in solar years (365 days), you are measuring an extra eleven days each cycle, which over a decade adds up to roughly four extra months of "wealth held". Most contemporary UK scholars accept solar-year calculation as a practical accommodation provided the donor pays slightly more to compensate — typically by adding 3% to the calculated figure rather than 2.5% — but the lunar calendar remains the technically correct standard.
The calculator above does not adjust for solar vs lunar measurement. If you measure in solar years and want the cautious adjustment, calculate normally then add a small uplift (roughly 1.03×) to the zakat figure before donating.
Zakat vs sadaqah — the difference
Sadaqah is voluntary charity. It can be given any time, in any amount, to any cause, by anyone. Zakat is mandatory, fixed at 2.5%, due once a year, and reserved for the eight categories named in the Quran. Sadaqah jariyah — continuing charity whose benefit recurs (a well, a school, a printed mushaf) — is a sub-category of sadaqah, not zakat. Donors sometimes conflate the two; the obligations and rewards are distinct.
About AmalQ. Every campaign accepting zakat on AmalQ is reviewed against the eight Quranic recipient categories. We track each donation from checkout through to the moment it reaches the recipient — see the about page for how the trail works.
Frequently asked questions
- What is the current nisab for 2026 in GBP?
- The silver nisab in 2026 sits at approximately £550, and the gold nisab at approximately £5,740. Both shift daily with metal prices. The National Zakat Foundation and most UK fatwa councils recommend silver because it is the lower threshold and captures more wealth for charity.
- Do I owe zakat if I have £1,000 in savings?
- If you use the silver nisab (the recommended UK basis) and the only asset is £1,000 in savings held above the threshold for a full lunar year, then zakat is due. The figure would be 2.5% of £1,000, which is £25. If you use the gold nisab, £1,000 sits well below the threshold and no zakat would be owed on this asset alone.
- Is zakat owed on my workplace pension?
- The contemporary majority position is yes — on the equity portion you could access. Defined-benefit pensions and the bond/cash portions of workplace schemes are typically excluded. The Hanafi position has historically been more conservative on pensions; if you follow the strict Hanafi line, the consensus narrows to only the equity portion you can withdraw immediately, after early-exit penalties.
- Do I include the equity in my house?
- No. Your primary residence is not zakatable, regardless of how much equity you have built. The same applies to a second home you live in part of the year. Investment property is also not zakatable on the property itself — only the rental income you are still holding as cash on the anniversary date counts.
- How do I calculate zakat on shares and ETFs?
- Two approaches. The precise method: identify the zakatable assets ratio for each company (cash and inventory as a percentage of market cap) and apply that to your holding. The conservative shortcut: treat 25% of the market value of your equity holdings as zakatable. Most UK Muslims use the 25% shortcut. Stocks held inside an ISA wrapper are zakatable in the same way as outside one — the wrapper is a tax shelter, not a religious one.
- Is crypto zakatable?
- Yes. The 2026 consensus is that cryptocurrency is treated as zakatable wealth at its spot value on the anniversary date. NFTs are debated but the prevailing position treats them similarly when held as a tradable asset. If you mine or stake crypto, the rewards are zakatable as they are received.
- Can I deduct my mortgage from my zakat calculation?
- You cannot deduct the full outstanding mortgage balance. The widely-held position is to deduct only the upcoming twelve months of mortgage payments. A growing minority of contemporary scholars argue the mortgage is a long-term obligation that should not be deducted at all because it is offset by the appreciating asset. The calculator above lets you decide what to enter under personal debts due now — input only what you are paying in the next thirty days for the strictest approach.
- When is the deadline to pay zakat?
- Zakat is due on your zakat anniversary date — the date you first crossed the nisab and have remained above it since. Most scholars allow a reasonable window (a few weeks) to make the calculation and complete the payment. Many UK Muslims align their anniversary with Ramadan to compound the reward of the month, which is permitted as long as the lunar year condition is satisfied.