Calculating your charity is a sacred task. It is one of the five pillars of Islam. This duty purifies your wealth and brings peace to your heart. Many Muslims worry about doing the math correctly. They often ask how to determine zakat without making mistakes. Our 2026 guide makes this process easy for you.

At SPAR Project, we believe that giving should be simple. We have created this guide to walk you through every step. You will learn about Nisab rates, the lunar year, and which assets to count. By the end, you will feel ready to fulfill your obligation. Your gift will help families in need and build a better future for the Ummah. Let us start this journey of faith and action together.

What Exactly is Zakat?

Zakat is more than a simple donation. The word itself means “to grow” and “to purify.” It is a mandatory payment for every adult Muslim with enough wealth. By donating a small portion of your possessions, you can purify the remainder of your income. It is a way to thank Allah for your blessings.

This pillar also serves a social purpose. It moves money from those who have plenty to those who have very little. This balance keeps the community strong. At SPAR Project, your Zakat funds clean water, food, and schools in Bangladesh. When you give, you are not losing wealth. You are investing in your spiritual life and helping a family survive a crisis.

Step 1: Check the Nisab Threshold

Before you give, you must know if you qualify. This is where the Nisab comes in. The Nisab is the minimum amount of wealth you must own for one year. If your wealth is below this line, you do not have to pay Zakat.

We base the Nisab on two standards: gold or silver.

• Gold Standard: The value of 87.48 grams of gold.
• Silver Standard: The value of 612.36 grams of silver.

In 2026, most scholars suggest using the silver standard. Silver has a lower value than gold. This lower threshold enables a greater number of people to contribute. More givers mean more help for the poor. You should check the current price of silver in your local currency on the day you calculate. If your total “liquid” assets are worth more than this amount, you are ready to pay.

Step 2: Understand the Lunar Year (Hawl)

You do not pay Zakat the moment you get money. You must hold that wealth for a full Islamic year. We call this cycle the “Hawl.” A lunar year is roughly 354 days long. This is about 11 days shorter than the solar calendar.

Most people pick a specific date for their Zakat anniversary. Many choose the month of Ramadan because the rewards are greater. Once you pick a date, stick to it every year. If your wealth stayed above the Nisab for the whole year, you pay on the total you have on your anniversary date. Do not worry if your balance went up and down during the year. Only the final total on your Zakat date matters for the math.

Step 3: Count Your Cash and Savings

Cash is the easiest asset to value. When learning how to determine zakat, start with your bank accounts. Look at your checking and savings accounts. Include any cash you keep at home or in a safe.

You must also include money set aside for special goals. Are you saving for Hajj? Are you saving for a wedding? This money is still subject to Zakat if you have held it for a year. Do not forget about digital funds. Money in PayPal, Venmo, or your crypto wallet counts too. Add all these cash amounts together to get your first big number.

Step 4: Value Your Gold and Silver

Gold and silver are unique assets. Even if you do not use them as money, they are still Zakat-eligible. You must include jewelry, coins, and bars.

1. Find the weight: Use a small scale or check your receipts.
2. Check the karat: Pure gold (24k) is worth more than 22k or 18k jewelry.
3. Find today’s price: Look up the current price per gram for your gold’s purity.

Multiply the weight by the price to find the total value. You only pay for the value of the metal. You do not need to pay for the value of diamonds, pearls, or the “making charge” the jeweler added. Just focus on gold and silver themselves.

Step 5: Include Business Assets

If you own a business, you must pay Zakat on your “stock in trade.” This includes anything you intend to sell for a profit. For a shop owner, this is the inventory on the shelves. For a builder, this might be raw materials like wood or bricks.

You do not pay Zakat on your business tools. You do not count your office building, your company car, or your computer. These are “fixed assets” used to run the business. Only count the cash the business has and the items you plan to sell. This procedure keeps the math fair and supports small business owners.

Step 6: Handle Stocks and Crypto

Many Muslims now invest in the stock market or digital coins. These are growing assets. If you trade stocks frequently to make money, you pay Zakat for their full market value. Look at your portfolio balance on your Zakat date.

If you hold stocks as a long-term investment for dividends, the math is slightly different. You only owe Zakat on the “Zakatable” part of the company. This term usually means their cash and inventory. Since such information is hard to find, many people simply pay 2.5% on the total value of their shares to be safe. For crypto, use the current market price of your coins on your anniversary date.

Step 7: Subtract Your Immediate Debts

Islam is a religion of balance. The organization does not want to take money from you if you are struggling with debt. You can subtract certain debts from your total assets before you calculate.

You can deduct:

• Overdue bills (rent, water, or power).
• Personal loans you need to pay back soon.
• The current month’s installment for a long-term loan (like a mortgage).

Do not subtract the entire balance of a 20-year home loan. You only subtract what is due right now. Once you take these debts away from your total assets, you have your “Net Zakatable Wealth.” This quantity is the number we use for the final calculation.

Step 8: Calculate the 2.5% Share

Now you are ready for the final math. The rate for Zakat is minimal. It is only 2.5%. This is the same as dividing your net wealth by 40.

For example, if your net wealth is $10,000, your Zakat is only $250.

$10,000 x 0.025 = $250.

This small amount might seem tiny to you. But when we combine it with the gifts of others, it becomes a powerful force. This 2.5% is what allows SPAR Project to build wells and feed hundreds of children. It is a small sacrifice that creates a giant impact.

Step 9: Choose Where to Send Your Funds

The Quran defines who can receive Zakat. It should go to the poor, the needy, and those in debt. When you give, make sure your money goes to a trusted partner.

SPAR Project specializes in reaching the most vulnerable. We work in areas where help is hard to find. We use your Zakat for:

• Emergency Food: Feeding families during floods.
• Clean Water: Building deep tube wells for villages.
• Orphan Care: Giving children a chance to learn.
• Medical Aid: Helping the sick who cannot afford a doctor.

Choosing a transparent charity ensures that your duty is fulfilled according to the Sunnah. We provide updates so you can see your impact in the real world.

Step 10: Use an Online Calculator for Accuracy

You do not have to do the math alone. Technology can help. Many websites have Zakat calculators. We at SPAR Project keep our 2026 calculator updated with the most recent metal prices.

You just enter your cash, gold, and debt numbers. The tool does the rest. This saves you time and prevents mistakes. Using a calculator gives you peace of mind. You can be sure that you have given the exact amount required by Allah. It is a fast, safe, and modern way to perform your worship.

Final Thought: Let Your Charity Bloom

Learning how to determine zakat is a beautiful part of your faith. It shows that you care about your community and your soul. By following these ten steps, you turn your hard turn into a blessing for others. Do not wait until the year ends to start thinking about it. Track your savings and stay mindful of your anniversary date. Every dollar you give through SPAR Project brings hope to someone in need. Start your calculation today and feel the joy of a purified heart.