If you own gold and are wondering about Zakat, I will explain the topic to you in a simple way.

Zakat is one of the most important obligations in Islam, and gold is one of the most commonly kept items. The problem is that many people do not know exactly how to calculate the Zakat on 24-karat gold or other types.

First, you need to know the Nisab. The Nisab for gold is approximately 85 grams of pure gold. That means if you have less than that, you are not obligated to pay Zakat. But if you reach that amount and it has been a full lunar year, then you are required to pay Zakat.

Regarding how to specifically calculate Zakat on 24-karat gold: 24-karat gold is 100% pure gold, so the calculation is very easy. You multiply the weight by the current price, then take 2.5% of the total amount.

Practical example: If you have 100 grams of 24-karat gold and the price per gram is 400 riyals, then the total value is 40,000 riyals. Zakat = 40,000 × 2.5% = 1,000 riyals.

If you have 21-karat or 18-karat gold, the process involves additional calculation. 21-karat purity is 87.5%, and 18-karat purity is 75%. So, you multiply the weight by the purity percentage.

For example: 100 grams of 21-karat gold = 100 × 0.875 = 87.5 grams of pure gold. If the price is 400 riyals per gram, the value = 35,000 riyals, and Zakat = 875 riyals.

Another important point: how to calculate Zakat on 24-karat and other karat gold varies depending on the purpose. If the gold is for trade and investment, Zakat is obligatory. But if it is jewelry for daily adornment, there is a difference of opinion among scholars — some say it requires Zakat, others say it does not.

The final point: When should you pay Zakat? After completing a full lunar year. Do not delay without a valid reason, because delaying Zakat is sinful.

Praise be to Allah, Zakat is not complicated if you understand the basic rule. Weight × Price × 2.5% = Zakat. The rest depends on the type of gold and karat.