Zakat on Savings Calculator – Calculate Yearly Zakat Easily
Calculate annual Zakat on savings by tracking monthly balances throughout the lunar year
Monthly Savings Balance
Enter your account balance at the end of each lunar month
Zakat on Savings (Yearly Method):
This calculator tracks your savings throughout the lunar year to determine Zakat eligibility and amount.
How It Works:
- Enter your account balance at the end of each lunar month
- Calculator finds the lowest balance during the year
- If lowest balance ≥ Nisab for full year, Zakat is due
- Zakat is calculated on the lowest balance (conservative method)
Why Lowest Balance?
Using the lowest balance ensures you only pay Zakat on wealth that remained above Nisab for the entire lunar year (Hawl). This is the conservative and recommended approach.
Nisab Threshold:
Based on Silver Nisab (612.36 grams of silver) ≈ $ 450
Note: Nisab values are approximate. Check current market rates for accuracy.
Zakat Rate:
2.5% (1/40) of lowest balance maintained throughout the year
Lunar Year (Hawl):
- 354 days (Islamic lunar calendar)
- 12 lunar months
- Zakat becomes due after completing one full Hawl
- Track from the date wealth first reached Nisab
What to Include:
- Savings account balances
- Checking account balances
- Fixed deposits and certificates
- Cash holdings
- Other liquid savings
Tips for Accuracy:
- Use account statements to find exact balances
- Mark calendar for lunar month ends
- Keep records of all 12 months
- Include all accounts and cash combined
Alternative Methods:
- End Balance Method: Pay Zakat on year-end balance (more generous)
- Lowest Balance Method: Pay on lowest (more conservative - used here)
- Average Balance Method: Pay on average (middle approach)
Disclaimer: This calculator uses the lowest balance method as recommended by many scholars. For specific situations or alternate methods, please consult with a qualified Islamic scholar.
Fulfilling your annual Zakat on savings is a vital act of worship and financial purity. It’s a way to cleanse wealth, share blessings, and ensure balance within society. At Digital Calculator, we make this process simple and accurate helping you calculate your Zakat on savings (yearly) in just seconds.
What Is Zakat on Savings?
Zakat on savings refers to the obligatory 2.5% you pay on the money you’ve saved and held for one full lunar year (ḥawl) once it reaches or exceeds the nisab threshold.
Savings are among the most common forms of zakatable wealth. They include:
- Cash held in savings or checking accounts
- Money saved for emergencies or personal goals
- Fixed deposits or term savings
- Digital wallets or online balances
- Money kept at home
As long as these savings remain in your possession for a complete lunar year and are above the nisab value, they are subject to Zakat.
The Nisab Threshold for Savings
The nisab is the minimum wealth a Muslim must possess before Zakat becomes obligatory. It is traditionally measured by the value of either:
- 85 grams of gold, or
- 595 grams of silver
Most people choose the silver-based nisab because it has a lower value and ensures more people can contribute to charity.
Example (based on approximate rates):
If silver is $0.80 per gram, then:
595 × 0.80 = $476
So, if your savings exceed $476 (or its equivalent in your currency) and remain for a full lunar year, you are required to pay 2.5% Zakat.
Formula to Calculate Zakat on Savings (Yearly)
Here’s a simple, copy-safe formula you can use:
Zakat on Savings = (Total Savings - Deductible Debts) × 0.025
Where:
- Total Savings = all the money you own (in bank or cash)
- Deductible Debts = debts due within the Zakat year (e.g., bills or short-term loans)
- 0.025 = 2.5% (the Zakat rate)
Step-by-Step Example
Let’s look at an example to make it clearer.
Example 1: Zakat on Bank Savings
Ahmed has the following at the end of his Zakat year:
- Savings account balance: $8,000
- Cash at home: $1,000
- Short-term debt due soon: $500
Step 1: Calculate Net Savings
Net Savings = 8,000 + 1,000 - 500 = $8,500
Step 2: Check Against Nisab
If the nisab (silver-based) is $476, then Ahmed qualifies to pay Zakat.
Step 3: Apply Zakat Formula
Zakat = 8,500 × 0.025 = $212.50
Ahmed owes $212.50 as his yearly Zakat on savings.
Table: Sample Zakat on Savings
Total Savings (USD) | Deductible Debts | Net Savings | Zakat (2.5%) |
2,000 | 0 | 2,000 | $50 |
5,000 | 500 | 4,500 | $112.50 |
10,000 | 0 | 10,000 | $250 |
20,000 | 2,000 | 18,000 | $450 |
50,000 | 5,000 | 45,000 | $1,125 |
How to Calculate Zakat on Savings (Yearly)
You can calculate it manually or use our Zakat on Savings Calculator for instant, error-free results.
1. Determine Your Zakat Date
Choose a consistent lunar date each year (e.g., 1st Ramadan or 10th Muharram) to review your wealth.
2. Add Up All Your Savings
Include all accessible money in accounts, cash, or digital wallets.
3. Deduct Short-Term Liabilities
Subtract immediate debts due before your Zakat date — for example, unpaid bills, rent, or installments.
4. Compare With Nisab
Check if your remaining savings exceed the nisab (value of 85g gold or 595g silver).
5. Apply the 2.5% Rate
Multiply your eligible amount by 0.025 to find your yearly Zakat obligation.
Combining Cash, Gold, and Other Assets
Zakat applies to your total zakatable wealth, not just one asset type.
If you have gold, silver, investments, or business inventory, you should combine their total values with your savings when assessing the nisab and calculating Zakat.
Example:
- Savings: $5,000
- Gold value: $2,000
- Total = $7,000 → Above nisab
So you’ll pay Zakat on the full $7,000.
Why Yearly Calculation Matters
Zakat is due once every lunar year (about 354 days). If you calculate it only once, consistently each year, you’ll avoid overpaying or missing past dues.
Neglecting to calculate annually can lead to unpaid Zakat accumulating over time — which should then be repaid for each missed year.
Using the Digital Calculator Zakat on Savings tool helps ensure you stay compliant and consistent every year.
Practical Tips for Paying Zakat on Savings
- Keep track of your balance regularly.
Use a spreadsheet or digital app to record savings and liabilities. - Pay immediately once due.
Delaying payment is discouraged unless for valid reasons. - Donate to qualified recipients.
Ensure your Zakat reaches those eligible under Islamic law (poor, needy, debtors, etc.). - Keep records.
Document your yearly calculation for consistency and accuracy.
Why Use Digital Calculator’s Zakat on Savings Tool?
Digital Calculator helps Muslims fulfill their annual Zakat with ease and precision.
With our Zakat on Savings (Yearly) Calculator, you can:
Calculate Zakat instantly in your currency
Adjust for debts and liabilities automatically
Use accurate, up-to-date nisab values
Store or print results for recordkeeping
Ensure complete Shariah compliance
No more manual math or uncertainty — just clarity, accuracy, and confidence in fulfilling your duty.
Don’t leave your obligation to guesswork. Use the Zakat on Savings (Yearly) Calculator on Digital Calculator today and get your accurate Zakat amount in seconds.
Whether your savings are in cash, accounts, or digital funds — our tool ensures your Zakat is correct, consistent, and complete.