Zakat is the third pillar of Islam. It is not optional, not recommended, not a matter of personal choice. For every Muslim whose wealth meets the threshold, it is an obligation as binding as prayer and fasting.And yet many Muslim professionals pay it incorrectly. Some underpay because they are unsure how to calculate it. Some overpay because they include things that are not zakatable. And some delay or skip it because it feels complicated.In this episode, Fahad Al Rawahi makes it clear.What you will learn:🔹 The fundamentals Zakat is 2.5% of your zakatable wealth, paid once per lunar year, when that wealth has been held for a full year and exceeds the nisab. The nisab is the equivalent of 85 grams of gold or 595 grams of silver. It moves with the gold price: in mid-October 2026, 85 g of gold was worth roughly $11,400. Always check the current figure.🔹 What is zakatableCash and bank balances: current accounts, savings and cash at home.Gold and silver: coins, bars and jewellery. Scholars differ on jewellery worn regularly; if unsure, the cautious position is to include it.Investments: shares in halal companies, held directly or through funds. Many halal platforms calculate zakat for you, or you can apply 2.5% to the current market value as a conservative approach.Money owed to you that you expect to receive within the year.Rental property: zakat is due on the rental income, not the property’s market value.Business assets: stock, cash and receivables, minus legitimate business liabilities.🔹 What is not zakatable The home you live in, the car you use, furniture, personal belongings and the tools of your trade. These are necessities, not wealth.🔹 When to pay Pick a fixed date in the lunar calendar. Many Muslims choose Ramadan, but what matters most is consistency. Set a reminder and pay on that date every year.🔹 Who it must reach The Quran defines eight categories of recipients: the poor, the needy, those who administer zakat, those whose hearts are to be reconciled, freeing captives, those in debt, in the way of Allah, and the wayfarer. A trustworthy Islamic charity or your local mosque can help it reach the right people.🔹 Not sure if you meet the nisab? If you have meaningful savings, investments or gold, calculate it. The zakat calculator on crypode.com lets you enter your cash, gold, investments and receivables and tells you whether zakat is due and how much. If you are right at the threshold, scholars generally advise paying.🔹 Why it matters Zakat is part of a system Islam designed to keep wealth circulating rather than concentrating. The 2.5% you give purifies and protects the 97.5% that remains. And it is a reminder that the wealth in your hands is not ultimately yours. It is a trust, with conditions attached. Do not delay, and do not approximate carelessly.This episode is for education only and is not a fatwa. For specific si

EP 26: Zakat Explained: How to Calculate and Pay It Correctly

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