Live Nisab Rates

Zakat is a compulsory act of worship that requires Muslims, at or above a certain wealth threshold, to donate a portion of that wealth, typically 2.5%, to those who are eligible. This threshold is called the Nisab (sometimes also spelled niṣāb).

The Nisab was set by the Prophet Muhammad (peace be upon him) at a rate equivalent to 87.48 grams of gold and 612.36 grams of silver (85 grams of gold and 595 grams of silver according is another opinion).

In today’s day and age we do not use silver or gold as a monetary exchange so when calculating your Zakat, you need to find out the equivalent of the rates the Prophet (peace be upon him) set but in your local currency.

This can be done by checking the market rate of gold and silver today.

Remember you only pay Zakat if your net assets equal or exceed the Nisab threshold. If you only have gold as an asset, then the Nisab measure for gold must be used. If, however, you have a mixture of assets, then the Nisab level for silver should be used.

Although some scholars still maintain that gold should be used regardless, using silver is safer and more beneficial for the recipients of Zakat. In most cases, this means that if your net assets (income and savings) are above the silver Nisab threshold, you must pay Zakat on the total amount of wealth you own.

The prices on the web often refer to today’s spot price for pure 24k gold. This is essentially the price that a gold trader might achieve when dealing directly within the London Metal Exchange bullion markets. However, for most of us, this isn’t the rate we’d receive when selling gold through local shops or high street dealers. These dealers often need to consider additional costs such as profit margins, cleaning, transport, storage, and security. Consequently, they offer a lower price which is approximately 10% less than the spot price. The exact amount can vary significantly, sometimes up to 30%, depending on the carat, weight, and specific dealer.

At NZF, our approach to determining the price of gold for Zakat purposes is pragmatic. We utilise a basket of values derived from live online traders who provide accessible rates to the public. We update these values daily to ensure that the rate we show is reflective of a real-world value that you could realistically achieve. We believe this method is more accurate for calculating the Nisab rate for both gold and silver, ensuring fairness and transparency in our Zakat calculations.

There are two standards as opposed to one. The reason for this is that Dinar and Dirham were commonly and interchangeably used in the markets in the Prophetic era. The exchange rate at the time was 1:10, and therefore the Zakat payer ended up paying the same amount in terms of purchasing power in the prophetic era. However, there is a stark difference between the gold and silver Nisab today. Hence, the silver Nisab is commonly suggested as the benchmark for Zakat obligation.