💰 Salary Zakat Calculator: How to Calculate Zakat on Your Income

Zakat is one of the five pillars of Islam, obligating adult, sane Muslims to give (2.5% of their qualifying wealth) each lunar year.  In practice, Zakat “purifies” savings and surplus by sharing with the poor and needy.  For salaried people, Zakat on salary works just like Zakat on any other wealth: only the portion you save counts, and only if you hold it above the “nisab” (minimum threshold) for one lunar year.  In other words, if you spend your entire salary on living expenses, you have no zakatable assets.  But if you put any money aside and it stays above the Nisab for a full Hijri year, then you owe 2.5% on that amount.

According to Islamic law (Sharia), the “nisab” is the amount of wealth at which Zakat becomes obligatory.  It was set by Prophet Muhammad (peace be upon him) as the value of about *87.48 grams of gold or 612.36 grams of silver*.  In modern terms, that usually means roughly *\$600–650 (silver nisab) or about \$9,000 (gold nisab)*, depending on current prices.  Many scholars and organizations recommend using the lower silver value so more people give Zakat.  In any case, you only pay Zakat if your savings (including leftover salary, cash, investments, etc.) stay above this threshold.  For example, if you started the year with savings above Nisab and ended with savings above Nisab, then you must pay Zakat on that wealth.

How Salary Zakat Works

Only surplus counts: Zakat applies to saved wealth and assets, not to the money you immediately spend on basic needs.  As one guide explains, *“if you receive a salary but all of it is spent on daily living, you have no wealth left on which to pay Zakat”*.  In this case you owe nothing.  But if you save part of your pay and it accumulates into a balance above Nisab, then that saved amount is considered zakatable wealth.

Lunar year (Hawl): Zakat is due only after a full Islamic (354-day) year of holding nisab-level wealth.  You start counting when your savings first meet or exceed the Nisab.  After one lunar year from that date, you pay Zakat on whatever you still have.  (Many pay it once a year for simplicity.)  Importantly, as long as your wealth was above Nisab at the beginning and end of the year, Zakat is due on it, even if it dipped below Nisab briefly in between.

Deduct debts and expenses: When calculating your zakatable wealth, you first total up all qualifying assets (cash, bank savings, gold/silver, stocks, etc.).  Then subtract immediate liabilities (current debts or expenses that are currently due).  If the net balance is still above the Nisab threshold, 2.5% is due.

Recurring salary: Many salaried Muslims set aside 2.5% of each paycheck as Zakat “on the spot.”  Others tally up their total savings at year-end.  Both approaches reach the same result: 2.5% of the net savings above Nisab.  As Dar al-Ifta (Egypt’s fatwa council) clarifies, salary savings are zakatable only **if** they are surplus to needs, debt-free, above Nisab, and held for a lunar year.

Step-by-Step: Calculating Salary Zakat

Calculating zakat on your salary savings is straightforward:

Total your assets: List all wealth you’ve had for the past year: bank balances, cash on hand, gold and silver value, stocks/shares, business inventory (if any), investments, retirement savings, etc.  Be honest and include anything you own beyond daily needs.

Subtract debts and expenses: Deduct any immediate liabilities: bills, loans due, or living costs that you need money for in the short term.  (Long-term debts like mortgages are treated differently by some scholars, but you should at least deduct what’s due now.)

Check the Nisab: See if the remaining balance is at or above the Nisab.  (Refer to current Nisab values like \~\$640 for silver or \~\$9,160 for gold.)  If it’s below Nisab, you owe no zakat this year.

Apply 2.5%: If your net savings meet the Nisab, multiply that balance by 2.5% (0.025).  This gives your total Zakat due for the year.  For example, if after expenses you have \$2,000 saved and the silver Nisab is \$640, then you pay \$2,000 × 2.5% = **\$50** Zakat.

Islamic Relief Canada provides this simple formula: *“Your Zakatable Wealth × 2.5% = Total Zakat You Owe for the Year”*.  In practice, many find it easier to use an online calculator to do these steps automatically.

Using a Salary Zakat Calculator

A salary Zakat calculator: is an online tool that automates the above steps.  You simply enter your income, savings, and assets, and the calculator applies up-to-date Nisab values and the 2.5% rate.  This saves time and avoids mistakes.  As Transparent Hands (an Islamic charity) notes:

The first step in making an online Zakat payment is to use a straightforward Zakat Calculator… Based on the value of your various assets, it makes generating a 2.5% dividend less complicated and time-efficient”.

Using a calculator ensures your salary Zakat is accurate.  It also updates the **current Nisab** threshold so you don’t have to.  (As of May 2025, Islamic Relief reports the silver Nisab is about \$640.)  Our Salat.AI calculator will do all this instantly.  In short, a salary zakat calculator *“takes away the stress and hard work”* of calculating Zakat and just shows you the 2.5% amount to give.

Make Your Zakat Calculation Effortless with Salat.AI
Calculating your salary Zakat can be time-consuming and prone to error—but not anymore. With an integrated calculator, you can ensure 100% accuracy while automatically applying the latest Nisab threshold—no manual updates required.

At Salat.AI, our dedicated development team is working hard to bring you a powerful, easy-to-use Zakat Calculator directly inside the Salat.AI app. This much-requested feature is coming soon!

Salat.AI is more than just a prayer app—it’s a complete Islamic companion designed to support Muslims in fulfilling their daily religious duties with ease and precision. From hyper-accurate prayer times based on your location, to a beautifully designed, ad-free interface available in over 10 languages, to a precise Qibla finder and essential tools like our Women’s Menstruation Tracker—Salat.AI is built with your spiritual well-being in mind.

The upcoming Zakat Calculator will add even more value, letting you quickly determine your Zakat obligations—especially your salary Zakat—with just a few taps. It eliminates stress and complexity, giving you the exact 2.5% amount due in seconds.

Stay tuned—soon, managing your Zakat will be as simple and seamless as your daily prayers, right within Salat.AI.