Zakat on Gold: Nisab and How to Calculate It, With Examples

Zakat on gold is 2.5% (one fortieth) of the gold you own, provided it reaches the nisab of 85 grams of pure gold (24K) and has been held for a full lunar year. If your gold is 21K or 18K, you first convert its weight into the equivalent pure gold and then compare it with the nisab.

This article walks through the steps in order, gives a karat conversion table and a worked example, and then presents the well-known scholarly difference of opinion on worn jewelry fairly. It is a practical calculation guide, not a fatwa; for any particular case, consult a scholar or a trusted fatwa authority.

What is the nisab for gold and silver?

The nisab is the minimum amount of wealth at which zakat becomes due. Jurists have set it as follows:

• Gold: 85 grams of pure gold (24K), roughly 20 mithqals.
• Silver: 595 grams of pure silver.

Note that the figure of 85 refers to pure gold. If you own 21K jewelry, do not compare its weight directly with 85; convert it first, as shown in the next section.

What is the hawl?

The hawl is the passage of one full lunar (Hijri) year while you own the nisab. If you buy gold that reaches the nisab, nothing is due until a Hijri year has passed. Many people choose one fixed date each year, such as the first of Ramadan, to settle all their zakat together. If you buy new gold during the year, scholars have details on how its year is counted, so ask a scholar about it.

How do you convert 21K and 18K to pure gold?

Gold purity is measured in parts of 24. 21K means 21 parts gold out of 24, which is 87.5%, and 18K means 75%. The rule is:

Pure gold = weight in grams × (karat ÷ 24)

So someone who owns 100 grams of 21K has just passed the nisab, because 100 × 0.875 = 87.5 grams of pure gold. Someone who owns 100 grams of 18K has not reached it, because 100 × 0.75 = only 75 grams of pure gold, unless they add other gold to it.

Calculation steps with a practical example

Suppose a woman has saved bars and pieces (not used as adornment) weighing 120 grams of 21K, and a full hawl has passed. This is an illustrative example with round numbers, not today's price.

You can shorten the steps: zakat on gold = total weight × 2.5%, i.e. 120 × 0.025 = 3 grams of the same karat. Paying zakat from the same karat of gold needs no conversion. Conversion is necessary to know whether the nisab is reached, and if you will pay in cash, use the price per gram of the karat you own on the day of payment. To follow prices, see the price of a gram of 21K gold in Egypt, and remember that the displayed prices are indicative and may differ slightly from a jeweler's price.

If you would rather avoid manual calculation, use the zakat calculator, which converts karats and applies the rate automatically.

Zakat on jewelry worn for adornment: a recognized scholarly difference

This is the question people ask about most, and there are two well-known views among scholars, each with its evidence:

• The majority view: The Maliki and Shafi'i schools, and the Hanbali school in its well-known position, hold that lawful jewelry that a woman wears or lends for adornment is not subject to zakat, because it is treated as personal use, like clothing and furniture.
• The Hanafi view: The Hanafis hold that zakat is due on gold and silver however they are used, including adornment jewelry, based on the general texts on zakat on gold and silver. Some contemporary scholars have adopted this view too.

As for gold saved as bars, pound coins, coins, or pieces that are not worn, or gold held for trade, most scholars hold that zakat is due once it reaches the nisab and a year passes. If you have jewelry you wear and gold you keep as savings, calculate the saved portion at the very least.

Because this is a matter of scholarly judgment, it is best to ask a scholar you trust or the fatwa authority in your country, and to describe your situation in detail: what you actually wear, what you keep, and whether you have debts.

Practical tips before paying zakat

• List your holdings: Write down the weight and karat of each piece, and check purchase invoices or the official hallmark. In Egypt, manufactured gold normally carries the hallmark of the Assay and Weights Authority (مصلحة الدمغة والموازين).
• Use the net weight: Exclude the weight of stones and settings if they are priced separately, since they are not gold.
• Fix one day for the calculation: Choose a single Hijri date each year and value your gold at that day's price.
• Mind debts: Scholars have details on how debt affects zakat, so ask if you have a large debt.
• Distribute to eligible recipients: These are the eight categories mentioned in the Qur'an; you can give directly or through a trusted organization.

Common mistakes when calculating zakat

• Comparing the total weight directly with 85 grams without converting the karat to pure gold.
• Using an old purchase price: valuation is at the price on the day of payment, not the day of purchase.
• Forgetting stored pieces in a safe, with family or in a bank; they are part of your wealth as long as you own them.
• Mixing saved gold with adornment gold without separating them, which loses accuracy, and the rulings on them differ among some scholars.
• Delaying payment after the hawl is complete without an excuse; it is better to act promptly.

Summary

Zakat on gold is calculated in three steps: convert your weight to pure gold, compare it with the 85-gram nisab, then pay 2.5% if the hawl has passed. For adornment jewelry, scholars hold two well-known views, so act on what you are satisfied with after asking those qualified. To check current prices before converting zakat to cash, follow the gold price today, bearing in mind that prices are indicative and change throughout the day.