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The nisab is the minimum wealth that makes Zakat obligatory. Below it, you owe no Zakat; at or above it, for a full lunar year, you owe 2.5%. Everything else
The nisab is the minimum wealth that makes Zakat obligatory. Below it, you owe no Zakat; at or above it, for a full lunar year, you owe 2.5%. Everything else in Zakat calculation depends on getting this threshold right.
There are two classical thresholds, defined by weight rather than money: the gold nisab is 87.48 grams of pure gold, and the silver nisab is 612.36 grams of pure silver. Because metal prices move, the money value of each nisab moves too, so a nisab tool must use current prices, not a printed table from last year.
At illustrative prices of $65 per gram of gold and $0.95 per gram of silver, the gold nisab is $5,686.20 and the silver nisab is $581.74. Consider a person whose total wealth is $3,000. Against the silver nisab, that wealth is above the threshold, so Zakat would be 2.5% × $3,000 = $75. Against the gold nisab, the same wealth is below the threshold, so no Zakat would be due. The same person, the same money, two different answers — which is why the choice of standard matters and must be made deliberately.
Many scholars recommend the silver nisab for cash and mixed wealth, because it brings more people into paying Zakat and benefits more recipients. Others hold that the gold nisab is the appropriate standard. This guide does not declare one side correct: choose a standard, use it consistently, and ask a qualified scholar if unsure.
The nisab must be met for one lunar year — about 354 days. The majority position is that wealth must be at or above the nisab at the start and end of that year; a temporary dip in the middle does not cancel the obligation. Record your wealth at both ends of the year.
All prices and rates in this example are illustrative, not live rates.
A woman's wealth is $4,000 in mixed cash and gold. She follows the silver nisab, which at the illustrative prices above is $581.74, so her wealth is above the threshold and her Zakat is 2.5% × $4,000 = $100. Had she followed the gold nisab of $5,686.20, no Zakat would be due. She should note which standard she used so next year's calculation is consistent.
The gold-versus-silver question and mid-year dips are both genuine scholarly differences. This guide states both positions plainly, because a reader who understands the difference can make an informed choice with a qualified scholar.