How to Calculate Zakat on Gold?
What is Zakat?
The third pillar of Islam requires all qualified adult Muslims who satisfy the Nisab requirement to pay Zakat, which is a required charitable donation.
Prior to Zakat becoming obligatory, Muslims must own at least the Nisab in total wealth. The Nisab threshold was established by the Prophet to be 87.48 grams (7.5 tolas) of gold and 612.36 grams of silver.
Why does God make us pay an obligatory charity?
God's divine justification for this required generosity is made clear in the Quran: It ‘cleanses’ the believer's own soul from the taint of their own sins. In addition, it purifies the believer's actual wealth by freeing them from the possessions they have accumulated from this world.
What percentage is Zakat?
You must pay 2.5% of your total wealth and savings as the Zakat. That amounts to 2.5% of whatever money, gold, or wealth you may have in excess of the Nisab limit. Before calculating your eligible wealth and your Zakat percentage, debts are also discharged. Using our online Zakat calculator, you can apply the Zakat % to your wealth.
What is Nisab on gold?
The ideal gauge for Nisab (the Zakat threshold) for gold (g) is 85 grams. Zakat is paid on gold if it reaches the Zakat threshold for currency. Here is a formula to calculate Nisab for gold:
85 grams of gold at the gram-for-gram pricing in USD is equal to Nisab (most precise)
The computations would be as follows (suppose gold price per gram = $58),
$58 x 85 g = $4930
This means that for a Zakat year, you must pay Zakat on your holdings at their Zakat Due Date if you have total gold quantities of 85 g or more or total currency amounts of $4930 or more. The last day of the lunar year that began on that Nisab accumulation date is when the Zakat Due Date (ZDD) occurs.
Why must you pay Zakat on gold?
Zakat is due on all generating and accumulating wealth that a Muslim owns once it reaches a certain maturity date and threshold. Gold is considered a particularly important asset for calculating Zakat because it has the potential for growth and development and is considered a stable and consistent form of wealth. In fact, Muslim scholars have chosen gold as the standard measure for the Nisab threshold due to its ability to serve as a unit of exchange for various forms of wealth, such as precious metals, coinage, currency, and money. When determining the amount of Zakat due, the value of gold and other assets is typically calculated in terms of their current market value.
How to calculate Zakat?
Zakat Calculator Online
Here at HasanaH, we are aware of how challenging it can be to determine how to calculate Zakat and how much you owe. You may learn how to calculate zakat in the most straightforward manner by using our online Zakat Calculator. Our Zakat Calculator will do the legwork for you once you enter all of your assets from the last 12 months. You can even automate your sadaqah to some of your favorite causes. If you have any questions about HasanaH or exactly how your donation will be used, feel free to contact us.
HasanaH does not make individual judgments over which projects qualify for Zakat. Instead, it enables donors to make informed decisions based on reliable data and to direct contributions to credible projects that are aligned with your priorities and values.
Are you interested in making a meaningful impact? Discover charitable projects here.