Gold is the asset most families ask about at zakat time. This guide shows how to work out zakat on gold step by step, with examples in rupees and dirhams.
1. Check the nisab
Zakat is due when your total zakatable wealth reaches the nisab and you have held it for a lunar year. The gold nisab is 87.48 grams, or 7.5 tola. The silver nisab is 612.36 grams, or 52.5 tola. If you own gold together with cash or other assets, many scholars use the lower silver nisab for the total.
2. Weigh your gold and note the karat
Zakat is on the pure gold in what you own. 22K gold is 22/24 pure, 21K is 21/24 and 18K is 18/24. Stones and making charges are not counted.
3. Value it at today's rate
Gold value = weight × today's 24K rate × karat ÷ 24. Use the rate you would get in your local market today.
4. Add your other zakatable wealth and take off debts due now
Add cash, bank balances, silver, investments and business stock, then subtract bills and instalments due now.
5. Pay 2.5%
If the total is at or above the nisab, zakat is 2.5% of it, which is the same as dividing by 40.
Example in Pakistan
Suppose the 24K rate is Rs 400,000 per tola (use the real rate on the day). You own 5 tola of 22K jewellery: 5 × 400,000 × 22/24 = Rs 1,833,333. Zakat on the gold alone is 2.5% = Rs 45,833.
Example in the UAE
Suppose 24K gold is AED 400 per gram (use the real rate on the day). You own 60 grams of 21K gold: 60 × 400 × 21/24 = AED 21,000. Zakat on the gold alone is 2.5% = AED 525.
Jewellery you wear
Scholars differ on gold that is worn. The Hanafi school, followed by most people in Pakistan, counts all gold jewellery. Other schools exempt jewellery worn regularly. Follow the guidance of a scholar you trust.
Need to convert weights first? Use the tola to gram converter, then the gold calculator for the value.
Sources
- Nisab weights: 87.48 g of gold (7.5 tola) and 612.36 g of silver (52.5 tola), as used by most zakat authorities
- For questions about your own case, ask a scholar you trust
Want the exact figure for your gold and savings?
Calculate your zakat