How to calculate Zakat on gold
If you own gold — whether as jewellery, coins, or bars — you are likely required to pay Zakat on it. Gold Zakat is one of the most commonly searched Islamic finance topics, yet many Muslims remain unsure about the rules, thresholds, and calculations involved.
This guide explains everything: the Nisab for gold, how to calculate Zakat on your jewellery, the scholarly differences on gold ornaments, and worked examples in multiple currencies.
What is the Nisab for gold?
The Nisab is the minimum threshold of wealth above which Zakat becomes obligatory. For gold, the Nisab is:
- 87.48 grams of pure gold (24 karat)
- Equivalent to 7.5 tola (commonly used in Pakistan and India)
- Equivalent to approximately 2.8125 troy ounces
If you own gold equal to or exceeding this amount (and one lunar year has passed since you acquired it), Zakat is obligatory at the rate of 2.5% of the total gold value.
Zakat on gold formula
The calculation is straightforward:
Zakat = Total weight of gold (in grams) × Current gold price per gram × 2.5%
Example 1: Zakat on 10 tola gold (Pakistan)
- 10 tola = 116.64 grams
- Current gold price (May 2026, approximate): PKR 250,000 per tola
- Total value: 10 × PKR 250,000 = PKR 2,500,000
- Zakat due: PKR 2,500,000 × 2.5% = PKR 62,500
Example 2: Zakat on 100 grams gold (UK)
- 100 grams of 22ct gold
- First convert to pure gold: 100g × (22/24) = 91.67g pure gold
- Exceeds Nisab (87.48g) ✓
- Current gold price: approximately £65 per gram (pure)
- Total value: 91.67 × £65 = £5,958.55
- Zakat due: £5,958.55 × 2.5% = £148.96
Example 3: Zakat on 7.5 tola gold
- 7.5 tola = 87.48g (exactly the Nisab)
- If you own exactly this amount or more, Zakat is due
- At PKR 250,000/tola: Total = PKR 1,875,000
- Zakat due: PKR 1,875,000 × 2.5% = PKR 46,875
Is Zakat due on gold jewellery?
This is one of the most debated questions in Islamic finance, and the ruling depends on which school of thought you follow:
Hanafi position — Zakat IS due on all gold
According to the Hanafi school (followed by the majority in Pakistan, India, Bangladesh, and Turkey), Zakat is obligatory on all gold that reaches the Nisab — including jewellery worn regularly. There is no exemption for personal use.
The evidence includes the hadith: "No owner of gold or silver who does not pay what is due on it, except that on the Day of Judgement plates of fire will be heated and his sides, forehead and back will be branded with them." (Muslim)
Shafi'i, Maliki, and Hanbali position — personal jewellery may be exempt
These schools generally exempt gold jewellery that is worn regularly and is within normal/customary amounts from Zakat. However, gold kept as savings, investment, or in excessive amounts is still subject to Zakat.
"Excessive" is defined by local custom ('Urf) — what might be normal in one culture could be excessive in another.
The safer approach
Most scholars recommend paying Zakat on all gold to be on the safe side — it purifies your wealth and benefits those in need regardless of which opinion is correct.
How to calculate Zakat on mixed gold (different karats)
Most jewellery is not pure 24k gold. Here is how to handle different purities:
| Karat | Purity | Multiplier |
|---|---|---|
| 24k | 99.9% | × 1.0 |
| 22k | 91.6% | × 0.916 |
| 21k | 87.5% | × 0.875 |
| 18k | 75.0% | × 0.750 |
| 14k | 58.3% | × 0.583 |
Step-by-step for mixed jewellery:
- Separate your gold by karat
- Weigh each group
- Convert to pure gold equivalent: weight × purity multiplier
- Add all pure gold equivalents together
- Check if total exceeds 87.48g Nisab
- If yes, calculate 2.5% of the total current market value
Example: Mixed jewellery collection
- 50g of 22k gold: 50 × 0.916 = 45.8g pure
- 30g of 18k gold: 30 × 0.75 = 22.5g pure
- 20g of 21k gold: 20 × 0.875 = 17.5g pure
- Total pure gold: 85.8g — Below Nisab, no Zakat due
Add another 5g of any gold and it crosses the threshold.
Zakat on white gold, rose gold, and platinum
- White gold: Yes, Zakat is due — white gold is real gold alloyed with palladium/nickel
- Rose gold: Yes, Zakat is due — rose gold is real gold alloyed with copper
- Platinum: No — platinum is not gold or silver, so it falls under "trade goods" Zakat only if held as investment
- Gold-plated jewellery: Only the actual gold content counts (usually negligible)
Do I combine gold with silver and cash for Nisab?
According to the Hanafi school — yes. If your gold alone does not reach the gold Nisab (87.48g) but combined with your silver and cash savings it reaches the silver Nisab (612.36g equivalent), Zakat becomes due on everything.
This is why many people who own even small amounts of gold may still owe Zakat when their total wealth (gold + silver + cash + investments) is combined.
Zakat on gold per tola — quick reference (Pakistan)
For quick calculation based on current approximate gold rates in Pakistan (May 2026):
| Gold owned | Approximate value | Zakat due (2.5%) |
|---|---|---|
| 7.5 tola (Nisab) | PKR 1,875,000 | PKR 46,875 |
| 8 tola | PKR 2,000,000 | PKR 50,000 |
| 10 tola | PKR 2,500,000 | PKR 62,500 |
| 12 tola | PKR 3,000,000 | PKR 75,000 |
| 15 tola | PKR 3,750,000 | PKR 93,750 |
| 20 tola | PKR 5,000,000 | PKR 125,000 |
Note: Gold prices fluctuate daily. Use the price on your Zakat anniversary date.
When to pay Zakat on gold
Zakat becomes due when:
- You own gold at or above the Nisab threshold
- One full lunar year (Hawl) has passed since you first possessed the Nisab amount
- You still own the Nisab on your Zakat anniversary date
Most scholars recommend choosing a fixed date (e.g., 1st Ramadan) as your annual Zakat date, then calculating all your assets on that date.
Frequently asked questions
Do I pay Zakat on gold I wear every day? According to the Hanafi school, yes. According to other schools, regularly worn jewellery in normal amounts may be exempt. When in doubt, pay it.
What gold price do I use? Use the selling price (what a jeweller would buy your gold for) on your Zakat date. This is typically lower than the retail buying price.
My gold has gemstones — do I pay Zakat on the stones? No. Only the gold content is Zakatable. You can estimate the gold weight excluding the stones, or ask a jeweller to separate the gold value.
Can I pay Zakat on gold in instalments? Yes, you can pay monthly as long as the full amount is paid by your Zakat anniversary. Many people find this easier on their budget.
What if the gold price was different when I bought it? Irrelevant. Zakat is calculated on current market value on your Zakat date, not purchase price.
Pay your Zakat on gold through HBSMWA
Once you have calculated your gold Zakat, ensure it reaches those who deserve it most. HBSMWA distributes your Zakat to verified recipients across Pakistan — orphans, widows, the disabled, and families living below the poverty line.
- 100% Zakat policy — no admin fees deducted
- Shariah-supervised distribution
- Transparent reporting
Calculate your Zakat and pay through HBSMWA — where your obligation transforms lives.