How Is Zakat Calculated?

How Is Zakat Calculated?

Wondering how to actually go about calculating your Zakat? Here are the steps laid out for you.

1. Total up all your sources of income: 
Cash + Gold & Silver + Debts Owed to You + Investment Property + Shares & Stocks + Investment & Saving Funds + Business Assets = Your Total Income

2. Total up your immediate needs and living expenses:
Personal & Living Expenses + Debts You Owe + Business Expenses = Your Living Expenses

3. Find out your total Zakatable Wealth:
Your Total Income – Your Living Expenses = Your Zakatable Wealth

4. Check if it’s above threshold for Nisab:
If your Zakatable Wealth is more than the Nisab threshold, then you can move on to the next step!

5. Calculate how much Zakat you have to pay:
Your Zakatable Wealth x 2.5% = Total Zakat You Owe for the Year