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Zakat Formula and the 85g Gold Nisab
Zakat is one of the Five Pillars of Islam: Muslims whose wealth exceeds a minimum threshold (nisab) pay 2.5% of their net assets annually. This calculator uses the most widely used standard, the gold nisab of 85 grams: nisab value = 85 Γ gold price per gram. For example, at a gold price of $75/gram, the nisab value is 85 Γ $75 = $6,375. Net zakatable assets = cash + (gold grams Γ gold price) + (silver grams Γ silver price) + investments/business assets β short-term debts. If this is at or above the nisab value, zakat due = net assets Γ 2.5%. For example, with net assets of $10,000 and a nisab of $6,375, you are above the nisab, so zakat due is $10,000 Γ 2.5% = $250. If net assets were instead $5,000 (below the $6,375 nisab), no zakat would be due β shown as "not due" rather than a misleading $0.