Please explain to me what the Nisaab is and how to calculate Zakah.


Nisāb is the minimum amount of wealth upon which Zakah becomes necessary. It is the threshold above which a person is deemed as ‘Sahib-e-Nisāb’.

The Nisāb (threshold) set by the Prophet (صلى الله عليه وآله وصحبه وسلم) is 20 Mithqāl of gold or 200 Dirhams of silver. These are now equivalent to:

  1. 87.48 grams of gold
  2. 612.35 grams of silver
  3. Money equal to any of the above in any form (Cash at banks, Bonds, ISA’s etc)

So let us assume a person reached the threshold on Muharram 1434 then Zakah becomes necessary on Muharram 1435 (so long as he remains Sahib-e- Nisāb at the end of the Zakah irrespective to fluctuation of the wealth above and below the Nisāb level during the Zakah year).

If you have a mixture of wealth, then calculate the value of each wealth and give Zakah of the total. For example, a person may have some gold, silver, trade goods and cash, then work out the value of gold, silver and trade goods, add it to the total saving he has and then take out 2.5% as Zakah.

[All the above rulings are mentioned in general Hanafī texts. It is important to learn the rulings and calculate the correct Zakah. Therefore it is necessary to sit with a scholar who will go through the important rulings]

Allāh knows best.

Answered by Shaykh Mohamed Husein Qadri

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