Zakat on Gold Explained
Gold is one of the primary zakatable assets in Islam. If you own gold equal to or exceeding the Nisab threshold and have held it for a full lunar year, you are obligated to pay 2.5% of its current market value as Zakat.
What is the Nisab for Gold?
The Nisab for gold is 87.48 grams, which equals approximately 7.5 Tola. This is the minimum quantity of gold you must own before Zakat becomes obligatory. If your gold is below this threshold, no Zakat is due.
How to Calculate Zakat on Gold
- Find the total weight of all your gold (in grams or tola).
- Check the current market price per gram of gold.
- Calculate total value: Weight (g) × Price per gram.
- If weight ≥ 87.48 g: Zakat = Total Value × 2.5%.
Why is Gold Subject to Zakat?
Gold and silver are considered stores of wealth in Islamic finance. The Prophet Muhammad (ﷺ) established specific thresholds for gold and silver to ensure that Zakat reaches those in need while not burdening those with modest means. Gold jewellery held purely as an asset (not for regular personal use) is subject to Zakat according to most scholars.
Gram vs Tola — Understanding Units
In Bangladesh and South Asia, gold is traditionally measured in Tola. One Tola equals exactly 11.664 grams. The Nisab of 87.48 grams therefore equals 7.5 Tola. This calculator supports both units and converts automatically.