How to Calculate Zakat in Pakistan: Step by Step
Which assets count, which don't, how to deduct debts, and a full worked example in rupees — following the approach most widely used in Pakistan.
Step 1: Pick your Zakat date
Zakat becomes due when your wealth has stayed at or above Nisab for one lunar year. In practice, choose the Islamic date on which you first had Nisab — or a fixed date such as 1 Ramadan — and calculate on that date every year.
Step 2: Add up what is Zakatable
| Include | Value at |
|---|---|
| Cash at home and in wallets (including foreign currency) | Amount held |
| Bank balances — current, savings, term deposits | Balance on your Zakat date |
| Gold and silver, including jewellery (Hanafi view) | Today's selling price |
| Shares, mutual funds, savings certificates, prize bonds | Market / encashment value |
| Business stock held for sale | Current sale value |
| Money lent that you expect to get back | Amount owed |
| Committee (BC) contributions paid in, not yet received | Amount paid in |
Step 3: Leave out what isn't Zakatable
- Your home, and property you live in or rent out (rent you've saved is counted as cash).
- Personal car, furniture, clothes and household items.
- Tools, machinery and equipment used in your business.
- Plots bought to live on or with no intention to sell. A plot bought to resell is business stock and is Zakatable.
Step 4: Subtract debts due now
Deduct money you must pay soon: this month's loan instalment, unpaid bills, rent due, or money owed to suppliers. For long-term loans such as a house loan, most scholars allow you to deduct only the instalments currently due, not the whole outstanding balance.
Step 5: Compare with Nisab and pay 2.5%
Zakat = (Zakatable assets − debts due now) × 2.5%
If the net figure is below Nisab, no Zakat is due. Most scholars in Pakistan advise using the silver Nisab when your wealth is a mix of assets; the Nisab guide explains the difference.
Worked example
| Item | Amount |
|---|---|
| Cash at home | Rs 80,000 |
| Savings account | Rs 650,000 |
| Gold jewellery (jeweller's buying price) | Rs 1,200,000 |
| Shares (market value) | Rs 300,000 |
| Money lent to a cousin, expected back | Rs 100,000 |
| Total Zakatable assets | Rs 2,330,000 |
| Less: car loan instalment and bills due this month | − Rs 130,000 |
| Net Zakatable wealth | Rs 2,200,000 |
| Zakat at 2.5% | Rs 55,000 |
If the bank deducted Rs 16,250 Zakat from the savings account on 1 Ramadan (2.5% of Rs 650,000), the remaining Zakat to pay would be Rs 38,750. Try your own figures in the Zakat calculator.
Compulsory Zakat deduction by banks
Under the Zakat and Ushr Ordinance, banks deduct 2.5% Zakat on 1 Ramadan from savings and profit-bearing accounts whose balance is at or above the Nisab amount notified by the government. Current accounts are not subject to this deduction. If you prefer to pay Zakat yourself, or follow a school of thought that differs, you can submit a Zakat declaration (form CZ-50) to your bank before Ramadan.
Gold jewellery: scholarly views
The Hanafi school, followed by most Muslims in Pakistan, treats all gold and silver — including jewellery worn regularly — as Zakatable. The Shafi'i, Maliki and Hanbali schools generally exempt jewellery for normal personal use. Follow the scholar you rely on; the gold Zakat calculator handles purity and tola conversions.
Zakat questions
When should I pay Zakat?
Is Zakat due on money saved for Hajj, a house or a wedding?
Is Zakat due on shares and mutual funds?
Can I pay Zakat to my relatives?
Does the bank's Zakat deduction count?
Last reviewed: 3 October 2026
Sources
- Nisab weights: 87.48 g gold (7.5 tola), 612.36 g silver (52.5 tola)
- Silver rate: Karachi Sarafa benchmark, 3 October 2026
- Zakat and Ushr Ordinance 1980 (bank deduction and CZ-50 declaration)
Estimates for planning only — not tax or religious advice. See our disclaimer, and tell us if you spot an error.