Zakat is a spiritual obligation that turns wealth into worship—and when it comes to money, knowing exactly how to calculate zakat is essential. Whether it’s cash in hand, in the bank, or savings tucked away for later, zakat on money must be calculated correctly to ensure it’s accepted.
This guide will walk you through how to calculate zakat on money step-by-step, with examples, real tips, and the easiest way to get it right every time.
Quick Answer: How Do You Calculate Zakat on Money?
Zakat on money is calculated at 2.5% of your total cash and savings that have been held for one lunar year and exceed the nisab threshold.
You need to:
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Add up all your money (cash, bank accounts, savings)
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Subtract immediate debts or dues
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Check if the remaining balance is above nisab
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If yes, multiply it by 2.5%
Step 1: Add Up All Your Money
Start by calculating all your liquid assets, including:
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Cash at home or in your wallet
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Money in your savings and checking accounts
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Funds in mobile wallets or digital banks
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Salary savings that you’ve kept for more than a year
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Money lent out that you expect to get back
Example:
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Cash at home: $200
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Bank savings: $2,000
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Digital wallet: $300
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Receivables: $500
Total = $3,000
Step 2: Subtract Immediate Liabilities
Next, deduct any short-term debts or bills that are due now or within the next year, such as:
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Rent or utilities owed
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Credit card bills
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Loans due soon
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Business dues (for self-employed people)
Example:
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Credit card: $500
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Utility bills: $200
Total liabilities = $700
Now subtract:
$3,000 (assets) – $700 (liabilities) = $2,300 net wealth
Step 3: Check Against the Nisab Value
Nisab is the minimum threshold of wealth required before zakat becomes obligatory.
It’s equivalent to the value of:
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85 grams of gold OR
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595 grams of silver
Because silver has a lower value, many scholars recommend using it to maximize benefit to the poor.
Example:
If silver is $0.75 per gram:
595 × $0.75 = $446.25
If your net wealth is above $446.25, you must pay zakat.
In our example, $2,300 > $446.25 → Zakat is due.
Want to skip the manual check? Use zakatcalculator.com.ng for real-time nisab value and automatic zakat calculation.
Step 4: Apply the Zakat Rate (2.5%)
Once you confirm your net money is above nisab and has been held for one full lunar year, multiply it by 2.5%.
$2,300 × 2.5% = $57.50
That’s your zakat due on your money this year.
Quick Zakat Table for Cash
| Total Cash & Savings | Zakat Due (2.5%) |
|---|---|
| $1,000 | $25 |
| $2,500 | $62.50 |
| $5,000 | $125 |
| $10,000 | $250 |
| $20,000 | $500 |
Need faster results? Just enter your numbers into zakatcalculator.com.ng and get your zakat in seconds—accurate and stress-free.
Zakat on Money in Different Forms
You must include money from various sources:
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Salary savings (if it’s still with you after a year)
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Investment returns (if they’re liquid and not reinvested)
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Gifts and inheritance (if they’ve been saved for over a year)
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Business earnings (if kept in cash or bank)
If these savings remain untouched for a full lunar year, zakat applies.
Can You Pay Zakat on Money in Advance?
Yes, you can pay zakat in advance—especially if you want to pay during Ramadan or help someone in urgent need. Just make sure to:
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Track what you’ve paid
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Deduct it from your yearly total when the time comes
Who Should Receive Your Zakat?
According to the Qur’an (Surah At-Tawbah, 9:60), your zakat on money should go to:
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The poor and needy
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Those in debt
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Travelers in distress
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Zakat administrators
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New Muslims or those close to Islam
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Those striving in the path of Allah
It’s best to prioritize the poor and the needy, especially during Eid.
To distribute it effectively, you can also use online zakat platforms. zakatcalculator.com.ng not only helps calculate zakat, but can guide you to verified distribution channels.
What Happens If You Miss Paying Zakat?
Zakat is a religious obligation, not a donation. If you missed it in previous years:
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Calculate what you owed for each year
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Pay it as soon as possible
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No need to pay extra unless you delayed it knowingly
Use tools like zakatcalculator.com.ng to go back and calculate past dues easily.
Conclusion: Don’t Let Confusion Delay Your Zakat
Zakat on money is one of the simplest forms of zakat—yet one of the most frequently misunderstood. The rule is clear:
If your money exceeds the nisab and has been saved for one full lunar year, you must give 2.5% in zakat.
Use a calculator like zakatcalculator.com.ng to simplify the process, stay organized, and fulfill your duty with confidence.
Zakat is not just a donation—it’s an investment in your akhirah. Don’t wait. Purify your wealth today.