Zakat, the sum and the arguments
Commonly 2.5% of your qualifying wealth, once it has stayed at or above the nisab for a lunar year. Deciding what counts is where it gets interesting.
What to do, in order
Pick a date and an approach
Choose a date you’ll remember and a scholar or institution you trust, and follow one approach consistently.
List what counts
Cash, savings, gold and silver, shares and funds, and money you expect to get back.
Do the sum and write it down
Keep a note, because next year you’ll have forgotten how you did it.
The details
The nisab
A threshold, commonly set by reference to 87.48g of gold or 612.36g of silver. The silver figure is much lower in pounds, so more people will owe zakat on it.
Where scholars differ
Pensions, long-term debts such as home finance, and jewellery you wear are the usual ones.
Sadaqah and zakat al-fitr
Sadaqah is voluntary charity. Zakat al-fitr is a small payment at the end of Ramadan. Both are separate from annual zakat on wealth.
A general estimate at 2.5%. Scholars differ on pensions, investments and debts, so ask someone you trust if you’re unsure. This is not a ruling.