How Much Is Zakat?

What Percentage Is Zakat?

Zakat is 2.5% of your qualifying net assets. This rate — known in Arabic as rub' al-'ushr (a quarter of one-tenth) — has been the standard for gold, silver, cash, and trade goods since the time of the Prophet Muhammad (peace be upon him). The rate is derived from authentic hadith and is accepted by all four major schools of Islamic jurisprudence.

For every £1,000 of zakatable wealth above the Nisab threshold, you pay £25. For every $1,000, you pay $25. The rate is constant regardless of how wealthy you are — a billionaire and someone just above Nisab both pay 2.5%.

How Much Zakat Do You Pay? A Simple Formula

The amount of Zakat you pay is determined by this formula:

Where:

• Net Zakatable Assets = Total Zakatable Assets − Deductible Debts
• Total Zakatable Assets = Cash + Gold + Silver + Investments + Business Assets + Crypto + Money Owed to You

This amount is only due if your net zakatable assets equal or exceed the Nisab threshold. If they fall below Nisab, your Zakat amount is £0.

How Much Zakat: Example Calculations

Example 1: Cash Savings Only

Aisha has £8,000 in her savings account. She has no other zakatable assets and no deductible debts.

• Net zakatable assets: £8,000
• Gold Nisab (at £63/g): 87.48 × £63 = £5,511
• £8,000 > £5,511 → Zakat is due
• Zakat amount: £8,000 × 2.5% = £200

Example 2: Gold

Omar owns 150 grams of 22K gold. The current gold price is £63 per gram. He has no other assets or debts.

• Pure gold: 150g × 0.9167 = 137.5g
• Gold value: 137.5 × £63 = £8,663
• Net zakatable assets: £8,663
• Exceeds gold Nisab of £5,511 → Zakat is due
• Zakat amount: £8,663 × 2.5% = £216.58

Example 3: With Significant Debts

Fatima has £20,000 in savings and investments. She has £7,000 in credit card debt and a personal loan. She also owns £3,000 worth of gold.

• Total zakatable assets: £20,000 + £3,000 = £23,000
• Deductible debts: £7,000
• Net zakatable assets: £16,000
• Exceeds Nisab → Zakat is due
• Zakat amount: £16,000 × 2.5% = £400

Example 4: Below Nisab

Yusuf has £3,000 in savings. No other assets. No debts.

• Net zakatable assets: £3,000
• Gold Nisab: £5,511. Silver Nisab: ~£398
• Using gold Nisab: £3,000 < £5,511 → Zakat is NOT due
• Using silver Nisab: £3,000 > £398 → Zakat = £75
• Many scholars recommend the silver Nisab to benefit more recipients

How Much Zakat on Different Asset Types

Cash and Savings

Zakat on cash is 2.5% of your total bank balances and physical cash on your Zakat date. Check every account — current, savings, digital banks, PayPal, and cash at home. Use our Zakat Calculator to sum everything in one place.

Gold and Silver

Zakat on gold is 2.5% of the value of the pure gold you own. Only pure gold content counts — 22K is 91.67% pure, 21K is 87.5% pure. Gold must reach the Nisab of 87.48g for Zakat to be due on gold alone, though the value may still be combined with other assets. Learn more in our Zakat on Gold guide.

Investments and Stocks

For shares actively traded, Zakat is 2.5% of the full market value. For long-term holdings, many scholars accept the simpler market-value method for individual investors. Learn more in our Zakat on Stocks guide.

Business Assets

Zakat on trading inventory, business cash and receivables is 2.5% of their value on your Zakat date. Fixed business assets (premises, equipment) are not zakatable. See our Zakat on Business Assets guide.

Cryptocurrency

Most contemporary scholars treat crypto as a zakatable digital asset at 2.5%. Value your holdings at the spot price on your Zakat date. See our Zakat on Crypto guide.

Does the 2.5% Rate Ever Change?

For the assets most Muslims hold — cash, gold, silver, investments, and trade goods — the rate is always 2.5%. This is not adjusted for inflation, market conditions, or personal circumstances.

However, different asset classes have different rates in Islamic law:

• Agricultural produce: 5% if irrigated by artificial means, 10% if naturally watered by rain or rivers. This is paid at harvest time, not annually.
• Treasure troves (Rikaz): 20% on mineral discoveries or buried treasure. This is a one-time payment upon discovery.
• Zakat al-Fitr: A small fixed amount per person (not a percentage), paid at the end of Ramadan.

For 99% of Muslims calculating personal Zakat each year, the rate is 2.5%. If your wealth includes agricultural land or mining interests, consult a qualified scholar for guidance on those specific assets.

Why 2.5%? The Origin of the Zakat Rate

The 2.5% rate comes directly from the Sunnah. The Prophet Muhammad (peace be upon him) stated: “On silver, one quarter of one tenth is due” (Sahih al-Bukhari, Book 24, Hadith 534). One quarter of one tenth is 2.5%.

The Companions of the Prophet applied this rate consistently to gold, silver, cash and trade goods. Classical scholars across the Hanafi, Maliki, Shafi'i and Hanbali schools all confirmed 2.5% as the standard Zakat rate. This is one of the least contested rulings in Islamic jurisprudence because the textual evidence is clear and the scholarly consensus (ijma') is strong.

Common Questions About How Much Zakat to Pay

• Do I pay Zakat on my total wealth or only on savings?Zakat is on zakatable assets — cash, gold, silver, investments, business inventory, crypto and money owed to you. Personal possessions (home, car, furniture, everyday clothing) are exempt.
• How do I know if my wealth has passed Nisab?Total your zakatable assets, subtract debts, then compare against the Nisab threshold. Use our Nisab Calculator for the current threshold in your currency.
• How much Zakat if my wealth fluctuates during the year?Use the value on your Zakat calculation date. If your wealth dipped below Nisab during the year but recovered by your Zakat date, Zakat is still due on the recovered amount.