Zakat is an obligatory form of giving in Islam. For cash and similar wealth, the usual annual rate is 2.5% when the relevant nisab, hawl and ownership conditions are met. It differs from voluntary Sadaqah and from the separate Ramadan obligation of Zakat al-Fitr.
Wealth, not simply income
The annual cash-wealth assessment starts with eligible assets on your Zakat date. It is not automatically a percentage of all wages earned during the year. Some possessions used for ordinary living are excluded, while savings, precious metals and certain investments can be included.
Two terms to understand
Nisab is the threshold used to assess the required level of wealth. This site uses 612.36g silver or 87.48g gold, with an indicative GBP price. Other recognised weight conventions exist.
Hawl is the lunar-year condition relevant to many forms of wealth. Treatment of balance changes and new receipts differs between schools. Other types of Zakat, such as agricultural produce, do not use exactly the same annual cash formula.
A simple example
£10,000 eligible assets − £1,000 permitted debts = £9,000 net eligible wealth. If the relevant nisab and hawl conditions are met, £9,000 × 0.025 = £225.
Once liability is established, the usual 2.5% is applied to the whole eligible balance, not merely the excess above nisab.
Who receives it?
Quran 9:60 sets out recipient categories. A charitable purpose does not automatically satisfy the rules for Zakat: eligibility and distribution arrangements matter. Ask an organisation how it handles your restricted payment. A payment intended as Sadaqah or Fitrana does not automatically settle an annual wealth obligation.
Start with a consistent method
Read the guide for each asset you own, gather dated values, and keep the approach you follow with your records. Our calculator explains its defaults and performs the arithmetic. For a personal ruling, consult a qualified scholar familiar with your circumstances.
Sources & calculation method
Sources checked on 8 September 2026. External organisations publish their own guidance; a citation does not imply their endorsement of this website.
This is educational guidance. We identify differences where relevant and do not claim a named scholarly review. For a personal ruling, consult a qualified scholar familiar with your circumstances. Our editorial policy.