For a straightforward cash-and-savings calculation, eligible zakatable wealth is multiplied by 2.5% once the applicable nisab and lunar-year conditions are met. The difficult part is deciding what belongs in that wealth total—not multiplying by 0.025. This guide explains a basic example; it is not a religious ruling for every asset or circumstance.
Start with the right scope
The National Zakat Foundation’s explanation of Zakat describes an annual obligation on specified wealth above a minimum threshold. Zakat is not simply 2.5% of every salary payment, every asset you own or all money that passed through your account during the year.
Use a consistent valuation date and currency. Make a list of your personally owned cash and savings, then identify any other assets that need a separate assessment. Gold, silver, investments, business stock and money owed to you can raise additional questions. Do not apply this cash example to agriculture, livestock or other categories with different rules.
Check nisab and the lunar-year condition
Nisab is the qualifying wealth threshold. Its cash value changes with the metal price and the standard being followed. Islamic Relief UK publishes its approach using 87.48 grams of gold or 612.36 grams of silver and explains its preference for the silver threshold in relevant cases. Other authorities may use different weight conventions or guidance for particular assets; do not mix standards without checking.
The annual cash-and-savings example here assumes the relevant hawl—a lunar year—and eligibility conditions have been satisfied. An anniversary based on the lunar calendar is not the same as repeatedly adding 365 days. Ask a trusted local scholar how temporary balance changes, newly acquired wealth and your chosen school affect your own calculation.
A simple cash-and-savings example
Assume all amounts are in one currency, the applicable nisab is below the eligible total, the lunar-year condition has been met and an adviser has confirmed the deductible amount:
| Item | Illustrative amount |
|---|---|
| Cash and bank savings | 10,000 |
| Confirmed allowable deduction | 1,000 |
| Net zakatable amount | 9,000 |
| Zakat at 2.5% | 225 |
(10,000 − 1,000) × 0.025 = 225. The 2.5% applies to the full eligible 9,000 in this example, not just the portion above nisab. These are invented round numbers for explaining arithmetic, not today’s nisab or a personal assessment.
Do not deduct every debt automatically
Debt treatment depends on its type and the guidance you follow. A long-term loan’s entire outstanding balance is not automatically an allowable deduction. NZF’s deductible-liabilities guidance distinguishes debt categories and discusses principal rather than interest. Confirm the allowable amount before subtracting it; a calculator cannot settle that religious question.
Keep a short worksheet showing the valuation date, source of the chosen nisab, asset balances, permitted deductions and payment. The CalcRange Zakat calculator can help with the arithmetic, but review its assumptions against the guidance you follow.
Frequently asked questions
Is Zakat calculated on salary or savings?
For this annual cash example, assess eligible wealth on the applicable valuation date. Do not automatically calculate 2.5% of gross annual salary without considering the actual Zakat rules.
Can I use a fixed nisab amount from an old article?
No. Check a dated threshold in your currency from the authority whose method you follow. An old cash value can be inaccurate even when the underlying weight standard is unchanged.
What if I own gold or shares?
The cash example is not enough to determine treatment. See the separate guides to Zakat on gold jewelry and Zakat on stocks, then confirm your circumstances with a qualified scholar.
Educational guide. Source references checked September 10, 2026; no claim of a personal fatwa or independent scholarly review. See our editorial and correction policy.
Related: Zakat on gold jewelry: rules and how to calculate it