You’ve been saving money all year—whether in your bank account, mobile wallet, or even as cash at home. Now, it’s time to calculate Zakat on your cash holdings, but you’re unsure how to do it correctly.
How much cash qualifies for Zakat? What if you have debts? Do you include money in your business account?
In this guide, you’ll get a clear, step-by-step breakdown of how to calculate Zakat on cash—without confusion. Plus, for a fast and accurate Zakat calculation, we highly recommend using this Zakat calculator.
Table of Contents
- Who Needs to Pay Zakat on Cash?
- What Types of Cash Are Zakatable?
- Step-by-Step Guide to Calculating Zakat on Cash
- Zakat Calculation Formula & Example
- Common Mistakes to Avoid
- Use This Zakat Calculator for Instant Results
1. Who Needs to Pay Zakat on Cash?
You are obligated to pay Zakat on your cash if:
✅ You own cash savings above the Nisab threshold (explained below).
✅ One full lunar year (Hawl) has passed since you acquired the cash.
✅ The cash is fully yours and not tied to immediate expenses or debt.
If all these conditions apply, you must pay 2.5% of your total cash savings as Zakat.
2. What Types of Cash Are Zakatable?
Not all money is subject to Zakat. Below is a table showing what counts:
| Zakatable Cash | Non-Zakatable Cash |
|---|---|
| Money in bank accounts | Money set aside for immediate bills (rent, utilities, food, etc.) |
| Physical cash at home | Emergency funds (if used immediately) |
| Digital wallets (e.g., Opay, Kuda, PalmPay, PayPal, etc.) | Money borrowed from others (not yet repaid) |
| Business cash balance (if owned by you) | Cash held for someone else (trust money) |
| Foreign currency holdings (converted to Naira) | Government tax payments |
| Fixed deposits (once matured and accessible) | Loans you are unable to collect |
💡 Zakat is due on any cash that is SAVED and remains with you for a full year.
3. Step-by-Step Guide to Calculating Zakat on Cash
Follow these four simple steps to calculate Zakat on your cash:
Step 1: Determine the Nisab (Minimum Zakatable Amount)
The Nisab is the minimum amount of wealth you must have before Zakat becomes obligatory. It is based on:
- Gold Nisab: 87.48 grams of gold
- Silver Nisab: 612.36 grams of silver
Many scholars recommend using silver Nisab because it results in more people paying Zakat and helping the needy.
💡 Use this Zakat calculator to find the latest Nisab value in Naira.
Step 2: Add Up All Your Zakatable Cash
Include:
✅ Cash in your bank account(s)
✅ Cash in hand (at home, wallet, or safe)
✅ Digital cash in wallets, apps, and fintech platforms
✅ Foreign currency (converted to Naira)
✅ Fixed deposits (if withdrawable)
Step 3: Subtract Your Immediate Liabilities
You can deduct short-term debts and necessary expenses, such as:
❌ Pending rent, utility bills, and food expenses
❌ Money owed to others (short-term loans)
❌ Business expenses (supplier payments, salaries, etc.)
💡 Long-term debts like mortgages are NOT fully deductible—only the next year’s installment applies.
Step 4: Calculate 2.5% of Your Net Cash
Once you have your total Zakatable cash, apply the 2.5% Zakat rate:
(Total Cash – Liabilities) × 2.5% = Zakat Due
4. Zakat Calculation Formula & Example
To make it clearer, let’s look at an example:
Example: A Working Professional
- Cash in bank: ₦5,000,000
- Cash at home: ₦500,000
- Mobile wallet funds: ₦1,000,000
- Foreign currency equivalent: ₦1,500,000
- Short-term debts (to be repaid soon): ₦2,000,000
💡 Zakatable wealth: ₦5,000,000 + ₦500,000 + ₦1,000,000 + ₦1,500,000 – ₦2,000,000 = ₦6,000,000
💡 Zakat Due: ₦6,000,000 × 2.5% = ₦150,000
✅ Want to skip the manual work? Use this Zakat calculator for an instant and accurate result.
5. Common Mistakes to Avoid
🚫 Forgetting digital wallets – Zakat applies to funds in fintech apps.
🚫 Not deducting debts correctly – Only short-term debts count.
🚫 Ignoring foreign currency holdings – Convert and include them.
🚫 Delaying Zakat payment – Pay it once it’s due.
💡 Don’t risk underpaying. Use this Zakat calculator to ensure accuracy.
6. Use This Zakat Calculator for Instant Results
Still unsure about your Zakat amount? Manually calculating can be tricky, but you don’t have to do it alone.
✅ Use this Zakat calculator to:
✔️ Instantly determine your Zakat amount
✔️ Ensure accuracy and avoid mistakes
✔️ Save time and effort
🔗 Click here to calculate your Zakat now—don’t delay fulfilling this important obligation!
Final Thoughts
Zakat is not just a duty—it’s a blessing. By giving from your cash savings, you purify your wealth and help those in need.
Now that you know exactly how to calculate Zakat on cash, make sure you pay it correctly and on time—and if you need help, this tool has you covered.
May Allah bless your wealth and accept your Zakat!