Ramadan 2026: What Is Nisab? Understanding Zakat Eligibility in Ramadan

Ramadan is not only a month of fasting and prayer, but also a time of compassion, reflection and generosity. During this sacred period, Muslims across the world prepare to fulfil one of Islam's most important obligations: Zakat. Yet many still wonder each year - how exactly should it be calculated?

What is Zakat and why is it important in Ramadan?

Zakat is one of the five pillars of Islam. It is an obligatory form of charity required from Muslims whose wealth reaches a minimum threshold known as Nisab. While Zakat can be paid at any time of the year, many choose Ramadan because acts of charity during this month carry immense spiritual reward.

The purpose of Zakat goes beyond simple donation. It is meant to purify wealth and ensure fair distribution within society. The Quran outlines specific categories of recipients, including the poor, the needy, those burdened by debt and travellers in hardship.

Understanding Nisab: Who must pay?

Zakat becomes obligatory only when a person's savings and eligible assets remain above the Nisab threshold for one full lunar year.

Nisab is traditionally measured against the value of gold or silver:

• 87.48 grams of gold
• 612.36 grams of silver

Many scholars recommend using the silver standard today, as it sets a lower threshold and enables more people in need to benefit.

If your wealth stays above this value for a year, you are required to pay Zakat.

What assets are included?

Zakat is calculated on wealth that has growth potential or can generate financial gain. These include:

• Cash savings (bank or at home)
• Gold and silver (including jewellery)
• Business inventory
• Investment profits
• Rental income savings
• Stocks and mutual funds held for investment
• Money owed to you that is expected to be repaid

Personal-use items such as your home, car, furniture, clothing and electronics are not included.

Step-by-step: How to calculate Zakat

Breaking it down makes the process simple:

Step 1: Add total assets

Include savings, gold/silver value, investments, business goods and receivables.

Step 2: Subtract liabilities

Deduct short-term debts, unpaid bills or financial obligations due within the year.

Step 3: Calculate 2.5%

Zakat is 2.5% of your net zakatable wealth.

For example, if your total eligible wealth after deductions is Rs 5,00,000, your Zakat would be Rs 12,500.

Many Islamic organisations and online Zakat calculators can help simplify this process further.

When should Zakat be paid?

There is no fixed Ramadan date for Zakat. It becomes due exactly one lunar year from the day your wealth first crossed the Nisab threshold. Many people align this date with Ramadan for convenience and spiritual significance.

Who can receive Zakat?

Islam clearly defines eligible recipients. These include:

• The poor
• The financially distressed
• Those in debt
• Travellers facing hardship
• Individuals involved in distributing charity

Zakat should not be given to immediate dependents such as parents or children, whom you are already financially responsible for.