Determine whether you meet the nisab threshold
Identify all zakatable assets you own
Include cash, gold, silver, business inventory, trade goods, and receivables likely to be paid
Exclude personal-use items such as your home, car, clothes, and household items
Calculate the total value of zakatable assets
Subtract immediate debts and liabilities due now
Verify that your zakatable wealth has remained above nisab for one lunar year
Use 2.5% of the final zakatable amount for most cash and asset holdings
For agricultural produce, livestock, and certain other categories, apply the specific zakat rate
Pay zakat to eligible recipients
Recalculate each lunar year on your zakat date