Zakat is owed once your qualifying wealth sits at or above the nisab for a full lunar year. All four schools set the rate at one-fortieth, or 2.5 percent. The nisab is defined in metal: 85 grams of gold or 595 grams of silver; you use its current market value on your due date. Count cash in hand and in accounts, gold and silver, investments held for trade, and money owed to you that you expect back. Subtract debts payable now. What remains is your zakatable base. Pick your own annual due date (many choose a date in Ramadan) and keep it.
which nisab: gold or silver? Schools differ
Where cash is concerned, Hanafi scholars generally use the silver nisab (lower, so zakat starts earlier, more generous to the poor), while many others use gold. Both are principled positions. The calculator on this site shows you both.
a worked example
Say you hold $6,000 in savings, $2,400 in shares held for trading, and owe $400 due this month. Base: 6,000 + 2,400 − 400 = $8,000. If the gold nisab today is about $7,200, you owe 2.5% of $8,000, which is $200.
where this comes from
views of the schools
The 2.5% rate on money and trade goods, the one-lunar-year condition, and the 85g/595g nisab weights are agreed.
Mainstream views shown fairly; we never rule one school correct.
Sources
AlAnswer curates and links established scholarship; we do not issue original rulings. Read the full sources for complete context. General education, not a personal ruling. For your specific situation, ask a local scholar.
people also ask
Is zakat due on my salary as it arrives?
Zakat is yearly, not per paycheck. Most people total what they hold on their chosen due date rather than tracking each deposit's year.
Do I pay zakat on my home or car?
No. Personal-use property is not zakatable. Property bought to resell is trade goods and is.
What about retirement accounts?
Positions differ with access and control. Accessible balances are commonly included; locked pensions vary; ask a scholar you trust.