Nisab

What is Nisab?

Nisab (Arabic: نصاب) is the minimum amount of wealth a Muslim must own before Zakat becomes obligatory. If your total zakatable wealth stays below the nisab, you owe no Zakat; once it rises above the nisab and stays there for a full lunar year, Zakat of 2.5% becomes due. The nisab acts as a floor that exempts those with modest means from the obligation.

The word comes from an Arabic root meaning "origin" or "foundation." In practice the nisab is fixed to the value of a set weight of gold or silver, so its cash equivalent changes with the market price of those metals.

The gold and silver standards

The Prophet Muhammad ﷺ set the nisab at 20 mithqals of gold or 200 dirhams of silver. In modern weights, this is approximately 87.48 grams of gold or 612.36 grams of silver.

Because gold and silver prices differ, the two standards give different thresholds. The silver nisab is much lower, so it makes more people liable for Zakat. Many contemporary scholars recommend the silver standard for cash and mixed wealth, as it benefits the poor by widening who pays — though some scholars prefer the gold standard.

How the nisab is calculated

Working out your nisab involves three steps:

• Pick a standard — gold or silver — the silver nisab gives a lower, more inclusive threshold.
• Find the current value — multiply the metal weight (87.48g gold or 612.36g silver) by today's market price per gram.
• Compare your wealth — add up your zakatable assets — cash, gold, silver, investments, business goods — and see if the total meets or exceeds the nisab.

The lunar year (hawl)

Nisab works together with the hawl — the passing of one full lunar year:

• Reaching the nisab — your Zakat year begins on the date your wealth first exceeds the nisab.
• Holding for a year — if your wealth is still at or above the nisab one lunar year later, Zakat is due on the full amount.
• Dips during the year — most scholars hold that brief dips below the nisab during the year do not reset the count, as long as you are above it at the start and the end.

Some assets — such as agricultural produce — follow different rules and are due at harvest rather than after a lunar year.

Common questions about nisab

• "Does my house or car count?" No. Personal-use items — your home, car, clothing, furniture — are not zakatable and do not count toward the nisab.
• "Gold or silver — which should I use?" Either is valid. The silver standard is lower and more cautious (you pay more often); the gold standard is higher. Pick one and apply it consistently.
• "Do I subtract my debts?" Many scholars allow you to deduct immediate debts from your zakatable wealth before comparing to the nisab. Long-term debts like a mortgage are usually treated differently — often only the next payment is deducted.

What this means for you

To know whether you owe Zakat, check your total zakatable wealth against the current nisab on your Zakat due date. If you're above it and have been for a lunar year, you owe 2.5%. If you're below it, you owe nothing this year.

Because the nisab moves with gold and silver prices, it's worth recalculating each year rather than relying on last year's figure. A calculator that pulls live metal prices removes the guesswork.

This page is educational. For binding rulings on specific situations, consult a certified Islamic scholar.