Zakat, one of the Five Pillars of Islam, is a religious obligation for all adult Muslims who meet the necessary criteria of wealth. It is typically calculated as 2.5% of a Muslim’s total savings and wealth above a minimum amount known as Nisab, and it is given annually. Here are the steps to calculate Zakat:

1. Determine Nisab: The Nisab is the minimum amount of wealth a Muslim must have before they become eligible to pay Zakat. This amount is often based on the current price of 3 ounces (or 87.48 grams) of gold or 21 ounces of silver (or 612.36 grams). You can use either to determine the Nisab, but many scholars suggest using the silver Nisab as it’s typically lower and thus benefits more people.

2. Calculate Total Wealth: This should include cash in hand and in bank accounts, real estate investments (excluding personal home), business investments, gold and silver, stocks, and shares, etc. Also, if you have given out loans, the money owed to you can be included as part of your total wealth.

3. Deduct Debts: If you owe any money, subtract this from your total wealth.

4. Check if wealth exceeds Nisab: If your remaining total wealth is more than the Nisab threshold you found in step 1, then you are eligible to pay Zakat.

5. Calculate Zakat: Take 2.5% of your wealth that is above the Nisab threshold. This is the amount you owe as Zakat.

Please consult with a knowledgeable Islamic scholar or a financial advisor well-versed in Islamic finance to ensure the accuracy of your calculations. It’s also worth noting that there are online Zakat calculators that can make this process easier.