How to Calculate Zakat on Gold

A step-by-step guide with worked examples — how much gold makes zakat obligatory, how to value it, and what the scholars say about jewellery.

Step 1: Check whether you reach the nisab

Zakat on gold becomes obligatory when you own at least 87.48 grams of pure gold (the classical measure of 20 mithqal) and that ownership has lasted one full lunar year (hawl). If you own less gold but also have cash, silver or business assets, scholars combine them — in that case most recommend checking your total wealth against the lower silver nisab of 612.36 grams of silver, which protects the rights of the poor.

Note that the nisab is measured in pure gold. Jewellery is usually 21k or 22k, not pure 24k. To be precise, multiply your jewellery's weight by its purity: 100 grams of 21k gold contains 100 × 21÷24 = 87.5 grams of pure gold — just over the nisab.

Step 2: Value your gold at today's market price

Zakat is calculated on the current market value of your gold on your zakat date — not the price you paid for it. Check your local gold rate per gram (most countries publish daily rates for 24k, 22k and 21k) and multiply by your weight in grams.

Example: you own 120 grams of 22k gold and today's 22k rate is 95 (in your currency) per gram. Your gold's zakatable value is 120 × 95 = 11,400.

Step 3: Pay 2.5% of the value

If you meet the nisab, zakat is 2.5% (one fortieth) of the full value — not just the part above the threshold. Continuing the example: 11,400 × 0.025 = 285 due as zakat.

You can pay in cash — you do not need to give away gold itself. Some people prefer paying an equivalent of 2.5% of the gold's weight in gold, which is also valid.

Worked example: mixed wealth

• Gold: 60 g of 21k → 52.5 g pure → below the gold nisab alone
• Cash savings: 4,000
• Gold value at 90/gram (21k): 60 × 90 = 5,400
• Total zakatable wealth: 5,400 + 4,000 = 9,400
• Silver nisab: 612.36 g × silver price 1.1 = 674 → total is far above nisab
• Zakat due: 9,400 × 2.5% = 235

The jewellery question

Whether regularly-worn gold jewellery is zakatable is a classical difference of opinion. The Hanafi school — followed by most Muslims in South Asia and Turkey — holds that all gold and silver is zakatable, worn or stored. The Maliki, Shafi'i and Hanbali schools exempt jewellery that is in normal personal use (not hoarded or excessive). Follow the ruling of your school or a scholar you trust; when unsure, paying is the safer and more generous position.

Frequently asked questions