Using the Zakat calculator

Enter all assets that have been in your possession over a lunar year into the Zakat calculator. This will then give you the total amount of Zakat owed.

How is Zakat calculated in 2024?

You can calculate your Zakat in 2024 by using Just Funding’s quick and easy-to-use Zakat calculator. 

Eligible Muslims pay Zakat once a year, and it is due as soon as one lunar (Islamic) year has passed since meeting or exceeding the nisab (certain amount of wealth). 

We have broken down the calculation process into Zakatable assets (gold, silver, cash, savings, business assets etc.) and Deductible liabilities (money you owe, other outgoings due) so you can calculate the Zakat you owe easily.

The amount of Zakat you need to pay will be determined once you have calculated the value of your net assets. You then need to see whether your net assets are equal to, or exceed, the nisab threshold.

How Zakat is calculated with an example?

Zakat is calculated through the following steps: 

1. Work out the value of all the assets you have owned over the past year. This includes gold and silver, savings, investments and shares and business assets, as well as money owed to you. For example, if you own £1, 000 worth of silver and gold, and have £10, 000 savings in the bank, the value of your assets is £11, 000. 
2. Work out your deductible liabilities, which includes the money you owe and other outgoings due. E.g if you owe £1, 000 to a relative, and have a fine to pay of £500, the sum of your deductible liabilities is £1, 500. 
3. We calculate the value of your net assets by taking away the sum of your deductible liabilities from the value of all the assets you have owned over the past year. 
4. Using the above example, this would be 11, 000 minus 1, 500, which equals £9, 500. 
5. Check if the value of your net assets is greater than this year’s nisab value. 
6. This year’s Nisab threshold is £350.50, so in this example the value of net assets is greater than the nisab value. 
7. We calculate how much Zakat you have to pay (Your Zakatable Wealth x 2.5% = Total Zakat You Owe for the Year). For our example, this would be calculated as follows: 9, 500 x 2.5/ 100 = £237.50
8. Just Funding’s Zakat Calculator makes the whole process simple and easy. All you have to do is plug in the assets you own and your deductible liabilities, and we’ll take care of the rest. 

Is Zakat on income or savings?

Zakat is based on the amount of Zakatable assets that  you own and not just  savings or income. 

For every sane, adult Muslim who owns Zakatable wealth over a certain amount – known as the nisab – he or she must pay 2.5% of that wealth as Zakat.

Zakatable assets include gold, silver, cash, savings and business assets, which have been in your possession over a lunar year. 

You can use our Zakat calculator above to find out if you’re eligible to pay Zakat, and how much you should pay based on your circumstances. 

How to calculate Zakat on cash?

Calculating Zakat on cash is very straightforward. 

First, total how much cash you own from the past year, including all cash in your bank account, cash at home, and cash which is owed to you. 

Then take away any cash which you own to others/ in debt, as well as any cash outgoings due, to work out how much cash you own. 

If this value is above this year’s nisab threshold £350.50, you must pay Zakat. This is calculated by multiplying the net cash you own by 2.5%. 

*Please note that you must calculate the Zakat due on cash alongside your other assets (this includes gold and silver, investments, shares and business assets).

You can efficiently calculate how much Zakat you owe using our Zakat calculator. 

How to calculate debts and liabilities with regards to paying Zakat?

Some debts and liabilities can be deducted from the total value of your Zakatable assets when calculating how much Zakat you must pay from the last year. These include: 

• Debts which must be paid off within 12 months.
• Up to 12 months worth of instalments of longer-term debts.
• Arrears and/or overdue payments.

However, not all debts and liabilities can be deducted from the total value of your Zakatable assets from the past year. These include: 

• Expenses and bills which are not yet due.
• Debts that are not payable at all in the next 12 months.
• Interest payments. As interest or riba is haram, if a person has interest due on debt this can’t be taken off the Zakat amount. 

For mortgages and student loans, alongside other long-term debts, only the amounts which are overdue or due imminently should be deducted when calculating Zakat. 

Zakat must also be paid on debts owed to you, that you believe will be paid- such as the repayment of loans given to family and friends. 

Zakat and Tax in the UK

Zakat can be difficult to navigate when it comes to questions regarding tax and pensions. UK tax can impact the amount of Zakat you pay and what you pay Zakat on.

Rules on UK tax and Zakat: 

• Personal taxes such as road and income tax are not exempt from Zakat. However, if the taxes being paid are overdue, they become a deductible debt and exempt.
• Money being saved for tax purposes is deductible from the Zakat total.