What is Nisab?
Nisab is the minimum amount that a Muslim must have before being obliged to zakat.
The Nisab was set by Prophet Muhammad (peace be upon him) at a rate equivalent to: 87.48 grams of gold and 612.36 grams of silver.
As we no longer use silver or gold as currency, you need to find out the equivalent monetary exchange value of the rates the Prophet Muhammad (SAW) set in your local currency. You can do this by checking the market rate of gold and silver.
The two values used to calculate the Nisab threshold are gold and silver.
Nisab Value (as of 06/04/2022):
Using value of silver (612.36 grams) – approximately $625.73
Using value of gold (87.48 grams) – approximately $7061.65
In the Hanafi madhab, the value of silver is used to ascertain the nisab threshold and eligibility to pay Zakat. The other madhabs use the value of gold.
Islamic Relief advises its donors to use the silver value (which is almost always a lower threshold to gold) because this allows for a greater amount to be eligible for Zakat, which means more help for deserving Zakat recipients.