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Calculating your Zakat doesn’t need to be complicated. The process becomes much easier when you break it down into two main parts: Zakatable assets (such as gold, silver, cash, savings, and business assets) and deductible liabilities (like debts or other payments due). Once you know the value of your net assets, you can quickly work out whether you meet the nisab threshold and how much Zakat you need to pay.
Using a Zakat calculator makes this process even simpler, giving you an accurate figure in minutes so you can fulfil your obligation with confidence. In this guide, we’ll explain step by step how to calculate your Zakat, what assets to include, how to handle debts, and how to pay your Zakat correctly in the UK.
What is Zakat and Who Needs to Pay It?
Zakat is a compulsory act of charity and one of the Five Pillars of Islam. It is a way of purifying wealth and helping those in need by giving a small portion of your surplus assets each year. The standard rate is 2.5% of your eligible wealth.
Every adult Muslim of sound mind who owns wealth above the nisab threshold for one full lunar year must pay Zakat. This includes assets such as gold, silver, cash, savings, investments, and business goods.
To make the process easier, Hope Welfare Trust provides one of the simplest ways to calculate your Zakat through its online Zakat calculator. By entering your assets and liabilities, you can instantly know how much Zakat you owe and fulfil your obligation with confidence.
What is Nisab in 2025 (UK Values)?
The nisab is the minimum wealth a Muslim must own before Zakat becomes obligatory. If your net assets reach this threshold, you pay 2.5% as Zakat.
Nisab thresholds are based on:
- Gold: 87.48 grams
- Silver: 612.36 grams
Since prices of gold and silver fluctuate, the nisab value in pounds changes daily. In October 2025, for example:
- Silver nisab was just under £700
- Gold nisab was over £8,000
Many UK scholars recommend using the silver nisab so more people contribute towards helping those in need.
How is Zakat calculated in 2025?
The calculation of Zakat is straightforward once you separate what you own from what you owe. Zakat is due on wealth that has been in your possession for one lunar year and meets or exceeds the nisab threshold.
Zakatable assets include:
- Gold and silver
- Cash at home or in the bank
- Savings and investments
- Business stock or goods
- Money owed to you
Deductible liabilities include:
- Short-term debts (due within 12 months)
- Outstanding bills or payments
- Instalments due soon on long-term loans
Once you subtract liabilities from your assets, you apply the 2.5% rate on the remaining balance. If much of your wealth is in savings, a Zakat savings calculator can make the process easier by quickly working out how much you owe based on your total balance.
Worked Example of Zakat Calculation
To see how Zakat is worked out, let’s go through a simple example step by step:
- Add up your assets
- Count everything you own that is Zakatable, such as gold, silver, cash, savings, investments, shares, and business stock. Example: You have £8,000 in savings and £2,000 worth of gold, giving you £10,000 in total assets.
- Subtract your short-term debts
Take away any amounts you owe that must be paid within the year, such as bills, rent, or personal loans. Example: You owe £1,200 on a credit card and £300 in unpaid bills, so your total liabilities are £1,500.
- Work out your net wealth
Assets – Liabilities = Net wealth. Example: £10,000 – £1,500 = £8,500 net wealth. - Compare with nisab
If your net wealth is above the current nisab, Zakat is due. - Calculate 2.5% Zakat
Multiply your net wealth by 2.5%. Example: £8,500 × 2.5% = £212.50 Zakat payable.
How Is Zakat Calculated on Cash?
Cash is one of the most common forms of wealth, and calculating Zakat on it is an essential part of the process. Whether the money is kept at home, in a bank account, or lent to others with the expectation of repayment, all of it must be considered when working out Zakat. Unlike assets such as trade goods or investments, cash is simple to measure because its value does not fluctuate.
Calculating Zakat on cash is straightforward:
- Add the total cash owned – at home, in bank accounts, and loaned out if repayment is expected.
- Subtract debts or expenses that are due within the year.
- If the remaining balance is above the nisab, pay 2.5% as Zakat.
Note: Cash should always be assessed together with other assets such as gold, silver, and investments to determine the full Zakat amount.
Which Debts and Liabilities Can Be Deducted from Zakat?
Only certain liabilities may be deducted when calculating Zakatable wealth.
Deductible liabilities include:
- Debts due within the next 12 months
- One year’s instalments on long-term loans
- Overdue bills such as rent, utilities, or wages
Non-deductible liabilities include:
- Expenses not yet due
- Debts not payable within the coming year
- Interest (riba), which cannot be deducted
For mortgages and student loans, only the instalments due in the next 12 months can be deducted. Zakat must also be paid on debts owed that are expected to be repaid.
Does Tax Affect Zakat Calculations?
Tax payments may have an impact on Zakat, depending on their status.
- Personal taxes (such as income tax or council tax) cannot be deducted unless they are overdue, in which case they count as liabilities.
- Money set aside for tax can be deducted when calculating Zakat.
- Pensions and long-term savings may need specific rulings, depending on whether the funds are accessible.
When unsure, it is best to consult a scholar or use a reliable calculator to ensure the calculation is accurate.
Paying Zakat with Hope Welfare Trust
| And establish prayer and give zakah and bow with those who bow [in worship and obedience]. Surah Al-Baqarah Ayat 43 |
At Hope Welfare Trust, the goal is to make giving Zakat simple, transparent, and impactful. Our easy-to-use Zakat calculator helps you work out exactly how much you owe in minutes by guiding you through your assets and liabilities step by step. Once the amount is calculated, you can make your donation securely online, ensuring your Zakat reaches those who need it most.
We ensure your Zakat is distributed according to Islamic principles, directly supporting the poor, the needy, and vital community projects. Every contribution is handled with care and accountability, so you can fulfil your obligation with peace of mind.
By paying your Zakat through Hope Welfare Trust, you not only meet a religious duty but also help transform lives across communities that depend on your generosity.
FAQs
How to calculate Zakat in the UK?
Add all Zakatable assets (cash, savings, gold, silver, investments, business stock), subtract short-term debts, and if the balance is above nisab, pay 2.5%.
How do I calculate my Zakat amount?
List assets, deduct liabilities, check against nisab, then pay 2.5% of the net amount. A tool like Hope Welfare Trust’s Zakat calculator makes this easy.
Who is not eligible for Zakat?
Zakat cannot be given to non-Muslims, the wealthy, immediate dependents (spouse, parents, children), or descendants of the Prophet ﷺ.
What is the nisab for Zakat 2025?
Nisab is based on:
- 87.48g gold (over £8,000 in Oct 2025)
- 612.36g silver (around £700 in Oct 2025)
Can I pay Zakat for future years?
Yes, advance payment is allowed, but yearly calculations are advised as wealth and nisab values change.
Can I use an online Zakat calculator to make it easier?
Yes, online calculators like Hope Welfare Trust’s provide quick, accurate results by applying current nisab values.
Who can receive Zakat in the UK and abroad?
Eligible recipients include the poor, needy, and indebted. In the UK, this may be struggling families or refugees; abroad, it supports vulnerable communities.
Can I pay my Zakat directly to a UK charity?
Yes, charities like Hope Welfare Trust accept Zakat and ensure it is distributed according to Islamic rules.
When is the best time to pay Zakat – Ramadan or yearly?
Zakat is due once a lunar year passes after reaching nisab. Many pay in Ramadan, but it can be given anytime it becomes due.
