What Is Nisab for Gold?
Nisab is the minimum wealth threshold that makes Zakat obligatory. For gold, the Nisab is 87.48 grams (7.5 tola) of pure gold, held for one complete lunar year (Hawl).
At the current gold price of approximately Rs 22,000 per gram (24-karat, late 2024), the Nisab for gold works out to roughly Rs 19.2 lakh. If your total gold assets exceed this value, Zakat is obligatory.
📌 Gold prices change daily. Always use the market rate on your Zakat calculation date (typically the date Ramadan begins, or your personal Hawl anniversary).
Step-by-Step Calculation
Step 1 — Determine total gold weight in grams
Weigh all gold you own: jewellery, bars, coins, and gold ETF holdings. Do not include gold you're wearing at the time of weighing if it's considered personal ornament (see scholarly note below).
Step 2 — Adjust for purity (karat)
Most Pakistani jewellery is 21 or 22-karat, not pure 24-karat gold. Convert to pure gold equivalent:
| Karat | Purity % | Conversion Factor |
|---|---|---|
| 24K | 99.9% | × 1.000 |
| 22K | 91.7% | × 0.917 |
| 21K | 87.5% | × 0.875 |
| 18K | 75.0% | × 0.750 |
Step 3 — Calculate market value
Multiply pure gold grams by the current 24-karat gold rate per gram.
Step 4 — Check if value ≥ Nisab
If the total value of your gold (plus other Zakatable wealth like cash and silver) equals or exceeds Nisab, Zakat is due at 2.5% of the total value.
Worked Example
Amna has 120 grams of 22-karat jewellery. Current gold rate: Rs 21,500/gram (24K).
- Pure gold equivalent: 120 × 0.917 = 110.04 grams
- Market value: 110.04 × 21,500 = Rs 23,65,860
- Is this ≥ Nisab (Rs ~19.2 lakh)? Yes.
- Zakat due: 23,65,860 × 2.5% = Rs 59,147
What About Worn Jewellery?
This is a well-known scholarly difference:
- Hanafi position (majority in Pakistan): Zakat is due on all gold above Nisab, including regularly worn jewellery.
- Maliki/Shafi'i/Hanbali position: Zakat is not due on jewellery worn for personal adornment, only on gold held as wealth/investment.
Most Pakistani scholars follow the Hanafi position, so unless you follow another madhab, include all gold in your calculation.
Gold in Savings Accounts or ETFs
If you hold gold through a bank savings product, mutual fund, or digital gold app, include the current market value of those holdings in your Zakat calculation. The format of ownership doesn't change the ruling — if the underlying asset is gold above Nisab, Zakat applies.
Combining Gold With Other Assets
Nisab is checked against your total net Zakatable wealth, not gold alone. This includes:
- Cash in hand and bank accounts
- Gold and silver
- Business inventory and receivables
- Investments and mutual funds
If you have Rs 10 lakh in gold (below Nisab) and Rs 12 lakh in savings, the combined Rs 22 lakh exceeds Nisab and Zakat becomes due on the total.
🌙 When in doubt, consult your local scholar. Our calculator provides a starting point — your specific situation may involve nuances not covered here.