The most repeated zakat question is not a legal puzzle, it is arithmetic: has my wealth reached the nisab, and has a full lunar year passed over it? This guide answers both with today's prices and worked examples.
The rule in two lines
Zakat is due on cash and its equivalents once the amount reaches the nisab and a full lunar year has passed over it. The rate is a quarter of a tenth, that is 2.5 percent.
The nisab is the minimum below which no zakat is due. The lunar year, hawl, is the twelve Hijri months that must pass over wealth that is at or above the nisab.
Why the nisab changes every day
The nisab is defined in gold and silver, not in paper currency:
- Gold nisab: 85 grams of pure gold.
- Silver nisab: 595 grams of silver.
Because metal prices move daily, the same nisab is a different number of dollars, riyals or dinars every day. This is why a printed figure from last year is not usable today.
Gold or silver: which threshold to use
Most contemporary councils prefer the silver nisab for cash and salaries because it is the lower figure, so more poor people benefit. Some scholars prefer gold because it better preserves purchasing power. Follow the fatwa body your community relies on, and stay consistent from year to year.
Worked example
Assume silver is priced so that 595 grams equals 5,000 units of your currency, and you hold 8,000 units that have been with you for a full lunar year.
- Compare your holding to the nisab: 8,000 is above 5,000, so zakat is due.
- Multiply the full amount by 2.5 percent: 8,000 x 0.025 = 200.
- Pay 200 units to the eligible categories of recipients.
What counts and what does not
- Counted: cash, bank balances, digital wallets, receivable debts you expect to collect, trade goods valued at market price, and shares held for trading.
- Not counted: your home, personal car, tools of your trade, and household furniture.
- Deducted: debts due now, not the entire balance of a long instalment plan.
Do it with live prices
Instead of hunting for today's gram price, open the zakat calculator. It loads current gold and silver rates automatically, shows both nisab options, and computes the 2.5 percent for you. For the lunar date of your hawl, use the Hijri calendar.
Data sources
- Sahih al-Bukhari and Sahih Muslim: hadiths on the obligation and rates of Zakat
- Sunan Abu Dawud: hadith on no Zakat due before a full lunar year passes
- International Islamic Fiqh Academy: rulings on Zakat of shares and trade goods
- Kuwait Zakat House: jurisprudential evidence for the gold and silver nisab
Last updated: 2 Sept 2026