What Is Nisab? Gold vs Silver Standard Explained
The threshold that decides whether zakat is due on your wealth — where it comes from, how to convert it to your currency, and which standard to choose.
The definition
Nisab is the minimum amount of wealth a Muslim must possess, for one full lunar year, before zakat becomes obligatory. It acts as a poverty line in reverse: those below it keep everything and may even be eligible to receive zakat; those above it purify their wealth by giving 2.5%.
The Prophet ï·º set the threshold in the two monetary metals of his time:
- Gold: 20 mithqal = 87.48 grams
- Silver: 200 dirhams = 612.36 grams
(Some scholars use slightly different gram conversions such as 85 g and 595 g; the differences are small. EasyCalcs uses the widely-adopted 87.48/612.36 figures.)
Converting nisab to your currency
Because we no longer use gold and silver coins, the nisab must be converted to currency using today's metal prices. The formula is simply: nisab weight × price per gram.
Example: if silver trades at 3.20 per gram in your currency, the silver nisab today is 612.36 × 3.20 ≈ 1,960. If gold trades at 240 per gram, the gold nisab is 87.48 × 240 ≈ 21,000. Notice how different the two thresholds are — that gap is why the choice of standard matters.
Gold or silver — which standard should you use?
Historically the two nisabs were roughly equal in value. Today, silver is far cheaper relative to gold, so the silver nisab is several times lower. The practical guidance most contemporary scholars give:
- Only gold assets? Use the gold nisab.
- Only silver assets? Use the silver nisab.
- Mixed wealth (cash, savings, gold, business assets)? Use the silver standard. Being lower, it brings more people into paying zakat — which is more beneficial to the poor and more cautious for the payer.
Common mistakes
- Using the purchase price of gold instead of today's market price on your zakat date.
- Paying only on the amount above nisab. Once you cross the threshold, zakat is due on the entire zakatable amount.
- Forgetting the lunar year. Wealth must remain at or above nisab for a full Hijri year (about 354 days) before zakat is due.
- Ignoring debts. Debts that are currently due are deducted before comparing with nisab.
Frequently asked questions
What is the nisab in grams?
87.48 grams of gold or 612.36 grams of silver. In currency terms, multiply the grams by today's local price per gram of that metal.
Should I use the gold or silver nisab?
If your wealth is mixed, most contemporary scholars recommend the silver standard because it is lower — more people pay zakat and the poor benefit more. If you own only gold, use the gold standard.
Does the nisab change every year?
The weight is fixed, but its value in your currency changes daily with metal prices. Always check the price on your zakat due date.