Zakat on Gold – Complete Calculation Guide

Zakat on gold is a mandatory Islamic obligation that applies to anyone who owns gold exceeding the Nisab threshold. Many Muslims struggle with calculating Zakat correctly because they are unsure whether all gold counts, how to value it at the right price, or whether jewelry should be included. Incorrectly calculating your Zakat obligation can mean underpaying what is due or overpaying unnecessarily. This guide will walk you through the exact process of calculating Zakat on gold, whether you own jewelry, coins, bars, or any other form of gold, and ensure you fulfill this important Islamic duty accurately.

What Is Nisab for Zakat on Gold?

The Nisab is the minimum amount of wealth you must own before Zakat becomes obligatory. For gold, the Nisab threshold is 87.48 grams, also referred to as 3 Mithqal in Islamic tradition. If you own less than this amount, you do not owe Zakat on gold. However, if your total gold meets or exceeds 87.48 grams, you must calculate and pay Zakat on its full value at the rate of 2.5% annually.

Islamic law also defines a Nisab for silver, which is 612.36 grams (21 Mithqal). If you own both gold and silver, you should calculate the Nisab based on whichever metal has the lower current market value. This is the more lenient approach and benefits the person paying Zakat. Using the lower value ensures you are meeting your obligation while being fair to yourself.

The current Nisab concept does not fix prices permanently because gold and silver prices fluctuate in global markets. What matters is checking whether your gold meets the 87.48-gram weight threshold, then calculating its current market value to determine your Zakat amount. This ensures your calculation remains accurate regardless of market conditions.

How to Calculate Zakat on Gold (Step-by-Step)

Calculating Zakat on gold follows a straightforward four-step process that you can complete in minutes.

1Step 1: Measure Your Gold in Grams or Tola

Weigh all the gold you own—including jewelry, coins, bars, dental work, inheritance, and gifts. Gold is often measured in grams in modern contexts, though traditional measurement uses tola (1 tola ≈ 11.66 grams). For simplicity, convert everything to grams. Include both 24-karat pure gold and lower-karat pieces, but remember that purity affects the final calculation.

2Step 2: Check If It Reaches Nisab

Compare your total gold weight against the Nisab threshold of 87.48 grams. If your total is below this, Zakat is not due on gold alone. However, you should still combine it with other Zakatable assets (cash, savings, investments) to see if your combined wealth reaches the overall Nisab.

3Step 3: Apply the 2.5% Zakat Rate

Multiply the total value of your gold (in your local currency) by 0.025. For example, if your gold is worth $10,000, your Zakat is $10,000 × 0.025 = $250. This 2.5% rate is consistent across all Zakatable wealth in Islam, whether gold, cash, or investments.

4Step 4: Ensure the Annual Ownership Condition (Hawl)

Zakat is due only on gold you have owned for a full Islamic lunar year (approximately 354 days). The annual period resets on the date of your personal Zakat anniversary. If you inherited or received gold partway through the year, the Hawl (ownership period) begins from that date. This condition ensures fairness and prevents excessive Zakat liability.

Zakat on Gold Jewelry – Is It Applicable?

Whether Zakat is due on gold jewelry is a matter where Islamic scholars hold different opinions based on different schools of Islamic jurisprudence. The Hanafi school considers all gold Zakatable, including personal and decorative jewelry. Other schools, such as the Maliki and Shafi'i schools, may exempt jewelry worn for personal adornment on a regular basis.

The safest and most comprehensive approach is to include all gold jewelry in your Zakat calculation, following the Hanafi interpretation. However, if you prefer to follow a different scholarly opinion, you should consult a trusted Islamic scholar who knows your specific circumstances. The important principle is to follow a legitimate Islamic position and be consistent each year. What matters most is your intention to fulfill your obligation according to the guidance you have accepted.

Example of Zakat Calculation on Gold

Scenario: You own 200 grams of gold

Total gold weight:

200 grams

Meets Nisab?

Yes (exceeds 87.48g)

Current gold price:

$65 per gram

Total value:

200 × $65 = $13,000

Zakat (2.5%):

$13,000 × 0.025 = $325

Total gold weight:

75 grams

Meets Nisab?

No (below 87.48g)

Current gold price:

$65 per gram

Total value:

75 × $65 = $4,875

Zakat due:

$0 (no Nisab)

In the first example, because the gold exceeds Nisab, you owe $325 in Zakat. In the second example, because the gold falls short of the Nisab threshold, no Zakat is due on gold alone. However, you should combine this gold value with other liquid assets to check if your total wealth reaches the overall Nisab.

Common Mistakes in Zakat on Gold Calculation

Not Checking Nisab

Many people calculate Zakat on gold worth less than Nisab. Remember, Zakat is only due if your gold reaches or exceeds 87.48 grams.

Forgetting the Annual Condition

Zakat is due only if you owned the gold for a full Islamic year (Hawl). Gold you acquired recently may not yet be due for Zakat.

Using Wrong Gold Prices

Always use the current market price on your Zakat due date, not the purchase price or an average price from previous months.

Mixing Personal and Business Gold

Include all gold in one calculation. Do not separate personal jewelry from business inventory—combine all gold for an accurate total.

Use Our Zakat on Gold Calculator

While understanding the calculation method is important, using a dedicated calculator ensures accuracy and saves time. Our Zakat calculator includes current global gold and silver prices, supports multiple currencies, and guides you through each step. It helps you account for all forms of gold and automatically checks if you meet the Nisab threshold. The calculator is free to use, requires no registration, and all calculations happen on your device for complete privacy. It is designed to assist you in fulfilling your Zakat obligation correctly.

Key Takeaways

  • Zakat on gold is due only if you own 87.48 grams or more for a full Islamic year
  • Calculate using current market price and apply the 2.5% rate to the total value
  • Include all gold: jewelry, coins, bars, gifts, and inheritance
  • Consult a trusted scholar if unsure about jewelry or mixed karat gold
  • Use our free calculator to ensure accuracy and fulfill your obligation correctly