Formula for calculating the Nisab of Zakat

1. Gold and Silver are sold in Troy ounces.
2. one gram equals 0.03215 troy ounce
3. Let the daily bid price be P
4. Let the Nisab be N
5. Let the current cash value of Nisab be C
6. (P * .03215) * N = C

An Example:

For Gold

1. P = 642.3 , N = 85g
2. (642.3 * .03215) * 85g = 1755.245325
3. C = 1755.245325

For Silver

1. P = 12.87 , N = 595g
2. (12.87 * .03215) * 595g = 246.1934475
3. C = 246.1934475

This cash value would then be used to determine whether or not the net worth of your savings is eligible for Zakat. When determining eligibility, look to the lower of the two values and then use this as the Nisab for all non-essential non-precious metal wealth (cash, stock value, inventory , etc.) You would then pay 2.5% of this net worth. Let’s say that you have 10,000 USD savings. You would then pay $250.00 as Zakat.