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The nisab for gold is approximately 87.48 grams. If you posses this amount or more, zakat is obligatory on you. The standard rate of zakat is 2.5% of total wealth. This means if the gold you have exceeds the nisab you are liable to pay 2.5% of the market value of the total gold.
Example:
Suppose you own 100 grams of gold, and the current market price is $50 per gram.
Total value of gold: 100 grams × $50 = $5,000
Zakat due: 2.5% of $5,000 = $125
Their are different thoughts on zakat on jewelry gold. Some scholars consider that if the gold exceeds nisab value, irrespective of the its type, whether raw or jewelry, you are liable to oay zakat. Some scholars think that gold used as personal adornment may be exempt. It is important to consult your school of thought for further guidance.
The gold must be in your possession for the whole Islamic lunar year before Zakat becomes due on it. This period of the lunar year is called hawl.
Zakat is obligatory on gold because it is considered as valuable form and recognized as measure of wealth. Islam requires zakat on any wealth and gold being precious and highly valuable comes under the zakatable asset. It retains or increases its value with the passage of time and accumulate wealth, therefore, exceeding the nisab leads to zakat.
Gold has always been remained crucial for economy of any country from the early days of human. Initially trade was made through gold and gold coins were used in business. It has unique characteristics, values and cost. Its value doesn't depreciated rather it retains its intrinsic value or the same increased.
In the early Islamic period or even before, gold was used as a primary medium of exchange and a standard measure of wealth. Its value and purity were universally acknowledged, making it a natural benchmark.
Gold is durable, does not corrode, and retains its intrinsic value over time. This stability makes it an ideal reference point for establishing a wealth threshold that remains relevant regardless of changing economic conditions.
Since gold is recognized across different cultures and eras for its inherent worth, using it as the basis for the nisab provides consistency in the calculation of zakat. It offers a clear, universally accepted standard by which wealth can be measured.
Islamic jurists have historically used gold (and, by extension, silver) as the standard for determining the nisab. This long-standing practice is rooted in the principles of Islamic law, which emphasize fairness and clarity in financial obligations.
Calculating zakat manually requires sophisticated knowledge of zakat formulas and typical values used in the process. A common man does not know about these things. If he searches online, there is possibility that he may get wrong information but he consider it correct. Religious obligations should be thoroughly cleared and free from errors as minor misunderstanding may lead to a situation where your religious liabilities may not be fulfilled but you thought it has. Utmost care, attention and knowledge is required while calculating zakat. Therefore, we have designed this calculator to calculate zakat for the ease of general people. A person without any deep knowledge of how zakat works, can calculate his religious liability on single click. A user just needs to enter the gold, he possessed, in grams and liabilities such as loans etc and that's it.
A user doesn't know what is happening in the backend of the code. We have made it easy for common people. All the formulas and calculations run in the backend accurately. The calculation process is applied after due verification of Islamic Scholars by adopting due rules and Islamic laws which makes our calculator unique and robust.
The main highlighting feature of our zakat on gold calculator is that it fetches live gold and currency rates. The user doesn't need to enter current rates rather he only requires currency and gold in grams, it automatically fetches current rates.
The user interface is simple and intuitive. A common person can easily understand what to do on the first sight.
The calculations performed are accurate, robust and instant. User faces no delay in getting results as it is performed instantly.
No registration or subscription is required.
It is free of cost and online. Anyone can access and use it from anywhere in the world.
It's working is simple at the user end. All the complex calculations and formulas applied and performed at the backend. To understand how to use this calculator you need to know about its user interface and layout.
First of all, at the top of calculator, current gold rate is displayed for information of user. This gold rate is fetched when user selects required currency.
Below this, there is currency selection drop-down option wherein all the currencies of the world are available. Users can select the desired currency and all the calculations will perform and results will be shown in that selected currency.
After that there are two textfields are available. One for entering gold in grams and second for entering liabilities such as loan, debts etc.
Below this, there are two buttons. One for calculations and second for clearing the form fields.
The simple process of using this calculator is given as under:
Select desired currency ➡️ enter gold weight in grams ➡️ enter loan or debt ➡️ hit the calculate button to see the results.
We have developed and designed this calculator with the help of Islamic Scholars and Islamic laws. Formulas taken from Islamic books after adopting due process and testing. However, in case of any confusion in the results, contact your school of thought for clarity. Use this calculator to perform zakat calculations on gold. If you have any questions or suggestions please contact us through our contact form or email. Your suggestions shall be appreciated.