Introduction

Zakat is one of the five pillars of Islam and is a compulsory act of charity for eligible Muslims. Among the assets on which zakat is due, gold is the most commonly owned. In this guide, you’ll learn how to calculate zakat on gold in 2025 with simple steps and practical examples.

What Is Zakat?

Zakat is an annual charitable payment required from Muslims who meet certain wealth thresholds (known as nisab). It is nothing but it is about purifiing the wealth by re-distributing a portion to the poor and needy, fostering community support and reducing inequality.

Who has to pay Zakat on Gold?

Suppose, If you own gold that meets or exceeds the nisab threshold, and one lunar year has passed since you owned it, then you are required to pay zakat on it.

What Is the Nisab for Gold?

The nisab threshold for gold is:

• 87.48 grams, or
• 7.5 tolas

If your gold ownership equals or exceeds this amount for a lunar year, zakat becomes wajib (obligatory).

How Much Zakat Is Due on Gold?

Zakat on gold is calculated at 2.5% of the total value of the gold owned.

Step-by-Step on How to Calculate Zakat on Gold

Step 1: Weigh Your Gold

Determine the total weight of all the gold you own. This includes jewelry, coins, or bars – whether you wear it regularly or not.

Step 2: Check the Current Market Rate

Look up the current market price of gold per gram (or per tola, depending on your local system).

Step 3: Calculate the Total Value

Multiply the weight of your gold by the current market rate to get the total value in your local currency.

Example:
You own 100 grams of gold.
Gold price per gram is ₹6,500.
Total value = 100 x 6,500 = ₹6,50,000

Step 4: Calculate 2.5% of the Total Value

Zakat = Total value x 2.5%
In the above example:
Zakat = ₹6,50,000 x 0.025 = ₹16,250

This ₹16,250 is the zakat you owe.

What If Gold Is Mixed With Other Metals?

If your jewelry is not pure gold (e.g., 22K or 18K), you can estimate the gold content or have a jeweler to help you to identify the pure gold weight. Zakat is calculated only on the gold portion.

Do You Need to Pay Zakat on Gold You Wear?

The Answer is Yes. Because the majority of scholars usually agrees that zakat has to be paid on all gold, regardless of how often it is worn or stored. However, there are differing opinions among schools of thought, so consult your local scholar if unsure.

Where to Pay Zakat?

You can give zakat to:

• The poor and needy
• Local charities distributing zakat
• Islamic organizations verified for zakat distribution

FAQs

❓ How do I calculate zakat on gold I received recently?

You need to wait for one lunar year before zakat becomes due on newly acquired gold.

❓ What if gold prices change daily?

Use the current market rate on the day you calculate and pay your zakat.

Final Thoughts

Understanding about how to calculate zakat on gold is crucial for every Muslim who owns gold. With a simple 2.5% calculation, you fulfill a spiritual duty while making a meaningful impact on others’ lives. Always double-check the current gold prices and seek guidance from a local scholar for specific questions.