How to Calculate Zakat — 2026
Zakat is 2.5% of your total net zakatable wealth held above the Nisab for one full lunar year. Follow these 7 steps to calculate your exact obligation.
Nisab 2026 (silver): approx. £496 | Gold Nisab: approx. £7,394
Find your Hawl date
Note the date your wealth first reached or exceeded the Nisab threshold. This is your Hawl start date. Zakat becomes due on the one-year anniversary of this date (lunar calendar — approximately 354 days).
List all zakatable assets
Write down every qualifying asset: cash and current accounts, savings accounts (including accumulated salary — see our guide to Zakat on salary), gold (all jewellery if Hanafi), silver, stocks and shares, ISAs, accessible pension, business trade stock, cryptocurrency, and money owed to you that you expect to receive.
Convert to market value in GBP
Convert every asset to its current market value in GBP on your Hawl anniversary date. For gold: weight in grams × spot price per gram. For stocks: current market value. For crypto: current GBP spot price.
Subtract short-term debts
Deduct any debts that are due to be paid within the coming year — rent arrears, bills due, short-term loans, credit card balances. Long-term debts (mortgage balance on your home) are not deducted from your zakatable wealth.
Check against the Nisab
Compare your net total against the Nisab. In 2026 the silver Nisab is approximately £496. If your net zakatable wealth is equal to or above this, Zakat is due. If it is below, no Zakat is owed this year.
Calculate 2.5% Zakat
Multiply your net zakatable wealth by 0.025 (2.5%). This is your Zakat amount. Example: £10,000 net wealth × 0.025 = £250 Zakat due.
Pay to eligible recipients
Distribute your Zakat to one or more of the eight Quran-specified categories. Giving through a trusted charity like World Aid Network ensures it reaches the poor and destitute with a 100% policy.
Worked example — Ahmed's Zakat calculation
Ahmed's assets on his Hawl date (1 Ramadan 1448):
- Current account and savings: £4,500
- Gold jewellery — 30g at 22ct, spot price £84.50/g → 30 × (22/24) × £84.50 = £2,323
- Stocks and shares ISA: £3,200
- Pension (accessible): £1,500
Total zakatable assets: £11,523
Short-term debts (credit card bill due): −£800
Net zakatable wealth: £10,723
Nisab check: £10,723 > £496 (silver Nisab) ✓
Zakat due: £10,723 × 2.5% = £268.08
What assets are zakatable?
- Cash savings & current accounts
- Gold (all, or worn jewellery if Hanafi)
- Silver
- Stocks & shares (market value)
- ISA accounts (cash & stocks)
- Business trade goods / inventory
- Accessible pension savings
- Cryptocurrency
- Money owed to you (receivables)
- Your home (primary residence)
- Car and personal transport
- Clothing & jewellery (Maliki/Shafi'i)
- Household furniture & goods
- Business premises & equipment
- Long-term locked pension (some scholars)
- Mortgage balance on your home
Frequently asked questions
What is the formula for calculating Zakat?
Zakat = (Total zakatable assets − short-term debts) × 2.5%. The total must be at or above the Nisab (approx £496 using silver Nisab in 2026) and must have been held for one full lunar year.
Do I pay Zakat on my total savings or just the amount above the Nisab?
You pay Zakat on your total net zakatable wealth — not just the surplus above the Nisab. If your wealth is £5,000 and the Nisab is £496, you pay 2.5% of £5,000 = £125, not 2.5% of (£5,000 − £496).
Does my mortgage count as a deductible debt?
The majority position is that your home mortgage is NOT deductible from your zakatable wealth because your home itself is not zakatable. You may deduct one month's mortgage payment if you follow a minority opinion that permits deducting the next due instalment, but the home's value and the full mortgage balance are excluded from the calculation entirely.
How do I calculate Zakat if my wealth fluctuated over the year?
Zakat is calculated on what you actually possess on your Hawl anniversary date — not the average or peak over the year. If you had £20,000 in savings most of the year but £8,000 on your Hawl date, you calculate Zakat on £8,000.
Can I pay Zakat in instalments?
Yes. Once the Zakat amount is calculated, you may pay it in portions over time, provided you intend to pay the full amount. However, the obligation arises on your Hawl date and should not be delayed without reason.