Zakat is 2.5% of your total net zakatable assets, provided those assets have been held above the nisab threshold for one complete lunar year. The nisab is the value of either 87.48 grams of gold or 612.36 grams of silver, the silver nisab is lower in dollar terms and therefore triggers the obligation for more people, which is why many scholars prefer it.
Worked example (silver nisab):Ahmad has $8,000 cash, $3,500 in investments, and owes $1,000 in debts. Silver is $1.05/g. Net assets = $10,500. Silver nisab = 612.36 × $1.05 = $643. Since $10,500 > $643, Zakat is obligatory. Zakat due = $10,500 × 2.5% = $262.50.
Below nisab example:Fatima has $400 in savings and no other assets. Gold is $85/g. Gold nisab = 87.48 × $85 = $7,356. Since $400 < $7,356, the gold nisab is not reached and Zakat is not obligatory this year.
The nisab debate is one of the most frequently discussed questions in contemporary Zakat jurisprudence. Gold prices have risen dramatically relative to silver since classical scholarship established both standards, making the gold nisab approximately 10 to 15 times higher in dollar value than the silver nisab at current market prices. This means a Muslim with $2,000 in savings would owe Zakat under the silver standard but not under the gold standard.
| Factor | Gold Nisab (87.48g) | Silver Nisab (612.36g) |
|---|---|---|
| Approx. dollar value | ~$7,400 (at $85/g) | ~$643 (at $1.05/g) |
| Obligation threshold | Higher bar | Lower bar |
| Who it affects | Wealthier individuals | Broader population |
| Scholar preference | Classical Hanafi view | Majority contemporary scholars |
| Effect on charity | Less Zakat collected | More Zakat distributed |
Many contemporary scholars, including those at National Zakat Foundation and Islamic Relief, recommend the silver nisab to maximize charitable distribution. Always seek a ruling from a qualified scholar if you are uncertain which standard your madhab or local community follows.
Not all wealth is subject to Zakat. Islamic jurisprudence distinguishes between productive wealth that grows or is held for investment, and personal use assets that facilitate daily life. Only productive and liquid wealth forms the zakatable base. If you hold precious metals beyond personal jewelry, the silver calculator can help you determine the current dollar value of your holdings.