How to Calculate Zakah on Cash and Savings
Cash and savings are among the most common assets subject to Zakah. Here is how to calculate what you owe.
**Step 1: Add up all cash and bank balances**
• Cash in your wallet
• Checking account balances
• Savings account balances
• Fixed deposits and term deposits
• Money in digital wallets and payment apps
**Step 2: Deduct your liabilities**
• Outstanding debts and loans
• Credit card balances
• Bills due within the year
**Step 3: Check the Nisab threshold**
Compare your net cash savings against the current Nisab value (Gold or Silver). Only if your savings exceed the Nisab threshold is Zakah due.
**Step 4: Calculate 2.5%**
If you are above the Nisab and have held this wealth for one lunar year (Hawl), multiply your net savings by 2.5%.
Example: If you have ₦1,000,000 in savings and no debts, and the Silver Nisab is ₦500,000, your Zakah would be: ₦1,000,000 × 2.5% = ₦25,000.
Disclaimer
This tool provides estimated Zakah calculations based on standard Hanafi Nisab values (87.48g gold, 612.36g silver) and the standard 2.5% Zakah rate. Results are for educational purposes only and do not constitute religious or legal advice. Please consult a qualified scholar for personalized guidance.