What Is the Nisab Threshold for Zakat?

Why Nisab exists

Zakat is obligatory charity on surplus wealth, not on every Muslim regardless of means. Nisab marks the line between someone who may receive Zakat and someone who generally must give. Classical sources anchor that line to amounts of gold and silver that were used as money in the Prophetic era (often linked to 20 dinars of gold or 200 dirhams of silver).

Because gold and silver no longer trade at the same purchasing-power ratio, the two thresholds now produce very different cash figures. That is why scholars discuss which standard to apply for bank balances and mixed assets.

Gold vs silver Nisab: which should you use?

In the Prophet's time, gold and silver Nisab were closer in value. Today silver is far cheaper per gram, so silver Nisab is a much lower bar in currency terms.

• Silver (often recommended for cash & mixed wealth): Using 612.36g of silver brings more people into the circle of giving and channels more support to the poor—many contemporary fatwa bodies lean this way for savings and receivables.
• Gold (when wealth is mainly gold): If you hold gold near or above 7.5 tola and little else, assess against the gold weight. See also our guides on Zakat on gold and gold in tola.

For a side-by-side school comparison on jewelry and related rules, read Hanafi vs Shafi'i Zakat.

How to convert Nisab into PKR, USD, GBP, or any currency

1. Ask a trusted jeweler, bank bulletin, or market source for today's price per gram of pure gold and pure silver in your currency.
2. Gold cash Nisab ≈ 87.48 × gold price per gram.
3. Silver cash Nisab ≈ 612.36 × silver price per gram.
4. Compare that figure to your net Zakatable assets on your Zakat anniversary date.

Detailed weight explainers: Nisab weight guide · calculator: Nisab calculator.

Gold vs silver Nisab—which should you use?

Historically both metals set thresholds. Today silver Nisab is often much lower in cash terms than gold, so more people qualify if they use silver. Many contemporary scholars and charities still discuss both; some urge gold for monetary wealth in modern economies, while others keep silver as the cautious (more inclusive) option. Pick a consistent approach for your Zakat year and document it—switching every year to “game” the threshold is not the spirit of the obligation. Our Nisab calculator shows both so you can compare.

The lunar year (Hawl)

Meeting Nisab once is not always enough. You generally need a full Islamic year of ownership—the Hawl. Schools differ on mid-year dips:

• Hanafi (common summary): Check at the start and end of your Zakat year; as long as you are above Nisab on those checkpoints, many fluctuations in between are overlooked.
• Shafi'i / Hanbali (common summary): Wealth should remain above Nisab throughout; falling below can reset the clock.

Always verify with a scholar who knows your school—especially if you have irregular income, debt, or business inventory.

What assets count toward Nisab?

Typical Zakatable categories include:

• Cash on hand and in bank accounts
• Gold and silver (rules on worn jewelry differ by school)
• Business inventory and trade goods
• Shares and funds (trading vs long-term treatment differs—see Zakat on shares calculator)
• Saved rental income and similar receivables

You generally exclude basic needs (Hajat Aslia): primary residence, personal vehicle for ordinary use, ordinary clothing, and tools of your trade—subject to scholarly detail.

Step-by-step: am I above Nisab?

1. List Zakatable assets at fair market value on your anniversary.
2. Subtract immediate deductible debts according to your school.
3. Convert gold/silver Nisab to cash using today’s local prices.
4. If net wealth ≥ chosen Nisab and Hawl conditions are met, calculate 2.5%.
5. Use the full Zakat calculator to walk through gold, cash, and business inputs.

Nisab vs Hajat Aslia (basic needs)

Nisab answers “Do I have enough Zakatable wealth?” Separately, Hajat Aslia explains which personal assets (home, ordinary car, work tools) are usually excluded from the Zakatable pool. Confusing the two leads people to count their house toward Nisab or to ignore cash that clearly qualifies.

Common mistakes

• Using last year’s metal prices when your anniversary is today
• Mixing gold jewelry rules across schools without checking
• Forgetting business inventory or share portfolios
• Paying Zakat on the raw total without subtracting allowable debts
• Treating Fitrana as a substitute for Zakat al-Mal—see Mal vs Fitr

Frequently asked questions