The Nisab Threshold Explained
Nisab is the minimum amount of wealth you must own before Zakat becomes obligatory. It is based on the value of gold or silver.
What Nisab Is
Nisab is the wealth threshold for Zakat.
Nisab is an Arabic term meaning 'minimum threshold'. In Zakat, it refers to the minimum amount of wealth you must own for one full lunar year before Zakat is due. If your wealth is below nisab, you are exempt from Zakat.
The nisab is not a fixed amount of money. It is based on the value of 87.48 grams of gold or 612.36 grams of silver. Because the price of gold and silver changes daily, the nisab value in your currency also changes.
Why Nisab Exists
Nisab ensures Zakat does not burden those with little.
Allah set the nisab to protect those who are not financially secure. If you have a small amount of savings or just enough to cover your basic needs, Islam does not require you to give Zakat. The nisab ensures only those with surplus wealth contribute.
For example, if the silver nisab is £3,500 and you have £3,000 in savings, Zakat is not due. You are below the threshold. Once your wealth grows to £3,500 or more and stays there for one full year, Zakat becomes obligatory.
How Nisab Is Calculated Today
Use the current market price of gold or silver.
To find today's nisab, take the weight (87.48 grams of gold or 612.36 grams of silver) and multiply it by the current price per gram in your currency. The result is the nisab value.
For example, if gold is £50 per gram, the gold nisab is 87.48 × £50 = £4,374. If your total zakatable wealth exceeds £4,374 for one full year, Zakat is due. Online Zakat calculators update nisab values daily based on live gold and silver prices.
info
Nisab Is a Cutoff
Nisab is not something you subtract from your wealth. It is simply the minimum threshold. If you are above it, you pay Zakat on your full wealth. If you are below it, you pay nothing.
tip