Question 1

What is nisab?

Accepted Answer

Nisab is the minimum threshold of wealth a person must hold (above their basic needs and short-term liabilities) for one lunar year before Zakat becomes payable. It is benchmarked against the value of either 87.48g of gold or 612.36g of silver.

Question 2

How is Zakat calculated?

Accepted Answer

Zakat is calculated as 2.5% of your net zakatable wealth — your total zakatable assets minus your qualifying short-term liabilities — provided that net wealth is at or above the nisab threshold and has been held for one lunar year (hawl).

Question 3

Is Zakat 2.5%?

Accepted Answer

Yes. The standard Zakat rate on personal wealth (cash, savings, gold, silver, business stock and similar assets) is 2.5% (one fortieth) once the nisab threshold is met.

Question 4

Do I pay Zakat on cash savings?

Accepted Answer

Yes. Cash in bank accounts, cash at home, ISAs and similar savings are generally treated as zakatable assets at their current value.

Question 5

Do I pay Zakat on gold and silver?

Accepted Answer

Yes. Gold and silver — including jewellery in many scholarly views — are zakatable. Use the current market value in GBP.

Question 6

Can debts reduce my Zakat calculation?

Accepted Answer

Only qualifying short-term liabilities — debts due within roughly the next 12 months and amounts that are overdue now — should be deducted. Long-term debts like mortgages and multi-year loans are usually not deducted in full.

Question 7

Is mortgage debt deducted in full?

Accepted Answer

Generally no. Most scholars and Zakat guidance say you should not deduct your full mortgage balance. Only this year's payments (or amounts that are overdue) typically count as a short-term liability.

Question 8

Do I pay Zakat on business stock?

Accepted Answer

Yes. Stock held for resale is treated as a zakatable asset, valued at the price you would expect to sell it for.

Question 9

Do I pay Zakat on cryptocurrency?

Accepted Answer

Many contemporary scholars treat cryptocurrency held as wealth or for trading as zakatable at its current GBP value, similar to cash. There is ongoing scholarly discussion, so check trusted guidance.

Question 10

What about pensions or property?

Accepted Answer

Pensions and property are complex. Some pension types and investment property may be zakatable in part, others may not be. This calculator does not fully model these cases — see the guide for more detail.

Question 11

What is hawl?

Accepted Answer

Hawl is one lunar year (around 354 days). Zakat is generally due once your wealth has stayed at or above the nisab threshold for one full lunar year.

Question 12

Should I use silver or gold nisab?

Accepted Answer

Silver nisab gives a lower threshold and is therefore more inclusive — many people choose this. Gold nisab is a higher threshold. Different scholars and organisations use different standards, so use whichever you and your trusted source prefer.

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