What is Nisab?
islamic financeDefinition
Nisab is the minimum threshold of wealth a Muslim must possess for a full lunar year (Hawl) before Zakat becomes obligatory. It is equivalent to the value of 87.48 grams of gold or 612.36 grams of silver. A Muslim whose total zakatable wealth equals or exceeds the Nisab for one full year must pay 2.5% of that wealth as Zakat.
Detailed Explanation
The Nisab was set by the Prophet Muhammad (ﷺ) as the minimum amount of wealth that indicates genuine financial stability. Below the Nisab, a person is considered to have insufficient surplus wealth to be obligated to pay Zakat.
There are two Nisab thresholds — one based on gold (87.48g) and one based on silver (612.36g). Because silver prices are historically lower, the silver Nisab is usually a lower threshold in monetary terms. Many contemporary Islamic scholars recommend using the silver Nisab because it includes more Muslims in the obligation to pay Zakat, which benefits more poor people.
The Nisab value changes daily with gold and silver prices. A Muslim should check the current Nisab value at the beginning of their Hawl (the lunar year cycle of their wealth). Use ToolsDock's Zakat Calculator to determine your current Zakat obligation based on today's Nisab values.
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