Suppose you hold PKR 500,000 in cash and bank balances, 300,000 of gold, 200,000 in investments, and no
separate silver or receivables, against immediate liabilities of 100,000. Your zakatable assets add up to
1,000,000, and subtracting the 100,000 of liabilities leaves net zakatable wealth of 900,000. Because
900,000 is well above the nisab threshold of 179,000, Zakat is due. The Zakat payable is 900,000 times
2.5%, which is 22,500. If your net wealth had instead fallen below 179,000, no Zakat would be due for that
year at all. The nisab acts as an on-off switch: cross it and the full 2.5% applies to your whole net
wealth, not just the amount above the threshold.
Item
Amount (PKR)
Cash, gold, investments
Rs 1,000,000
Less liabilities
Rs 100,000
Net zakatable wealth
Rs 900,000
Nisab threshold
Rs 179,000
Zakat due at 2.5%
Rs 22,500
How it is calculated
Zakat is an annual obligation of 2.5% on net zakatable wealth that has been held for one full lunar year.
The tool adds your zakatable assets, which are cash and bank balances, the value of gold and silver,
investments, and money owed to you, then subtracts immediate liabilities to arrive at net wealth. It
compares that net figure against the nisab, the cash-equivalent threshold announced each year and tied to
the value of a set weight of gold or silver. If your net wealth meets or exceeds the nisab, Zakat is due
on the entire net amount at 2.5%; if it falls short, no Zakat is payable for the year. Personal-use items
such as your home, car and everyday possessions are generally excluded, while gold and silver held as a
store of value are included. The nisab changes with precious-metal prices, so verify the current figure
each year before finalising your calculation.
Frequently asked questions
How is Zakat calculated in Pakistan?
Zakat is 2.5% of net zakatable wealth held for one lunar year, where wealth is your cash, gold, silver, investments and receivables minus immediate liabilities. It is only due if that net wealth meets or exceeds the nisab, the cash-equivalent threshold announced each year. Below the nisab no Zakat is payable.
What is the nisab and how is it set?
The nisab is the minimum wealth threshold that triggers a Zakat obligation. In Pakistan it is expressed as a rupee equivalent, set annually by the Central Ruet-e-Hilal Committee or a relevant authority based on the gold or silver standard. Because precious-metal prices shift throughout the year, the published nisab figure is recalculated each Ramadan. Always verify the current figure before finalising your Zakat.
Is my house or car counted as zakatable wealth?
Personal-use assets, meaning the home you live in, your vehicle, household furniture, and everyday clothing, are generally excluded from zakatable wealth under the commonly applied rules. Gold and silver jewellery held as a store of value are included, while jewellery in daily personal use is treated differently by some scholars. If you are unsure about specific items, consult a religious scholar alongside this calculator.
Does Pakistan deduct Zakat automatically from bank accounts?
Yes. Under the Zakat and Ushr Ordinance 1980, banks deduct Zakat at 2.5% from savings and profit-and-loss accounts on the first of Ramadan if the balance meets the nisab. If you calculate and pay Zakat yourself, you can file a declaration form with your bank to opt out of automatic deduction and manage the obligation directly.