What is Nisab?
The minimum amount of wealth a Muslim must hold before Zakat becomes due.
Nisab is the threshold for Zakat — the value of 87.48g of gold or 612.36g of silver. If your net zakatable wealth, held for a full lunar year, exceeds the nisab, Zakat of 2.5% is due. Many scholars suggest the lower silver nisab.
Example
If the silver nisab is 60,000 and your net wealth is 900,000, Zakat (2.5%) is 22,500.
How nisab is set
Nisab is the minimum amount of net wealth a Muslim must hold before Zakat becomes due. It is defined by the value of 87.48 grams of gold or 612.36 grams of silver, converted at current market prices — so the cash figure changes as metal prices move.
Gold or silver, and why it exists
Many scholars recommend using the lower silver-based nisab, because it brings more people into giving and therefore benefits more recipients. The threshold exists so that Zakat is owed only by those with genuine surplus wealth held for a full lunar year, not by those with little.