How to Calculate Zakat on Cash

How to Calculate Zakat on Cash: A Simple Guide for People in Bangladesh

Zakat is one of the five pillars of Islam, and it’s an obligatory form of charity for Muslims. It is a way to purify your wealth by giving a portion of it to those in need. If you live in Bangladesh and want to know how to calculate zakat on your cash, this guide is for you. We will explain everything step-by-step in simple words.

Understanding Zakat

Before we dive into the calculations, let’s understand what zakat is. Zakat is not just a charity; it’s a mandatory act of worship. The word “zakat” means “purification” and “growth.” By giving zakat, you purify your wealth and help those who are less fortunate.

Who Needs to Pay Zakat?

Not everyone has to pay zakat. Here are the conditions:

  1. Muslim: You must be a Muslim to pay zakat.
  2. Adult: You should be an adult, having reached puberty.
  3. Sane: You should be of sound mind.
  4. Nisab: You must own wealth above a certain amount, known as the nisab.

The nisab is the minimum amount of wealth one must have before zakat becomes due. It’s equivalent to the value of 87.48 grams of gold or 612.36 grams of silver. As of now, many people prefer to use the value of silver as it benefits more people in need.

Calculating Nisab in Bangladeshi Taka

First, we need to know the current market price of gold and silver. Therefore, it varies from time to time. Before any counting please check the latest price of gold and silver. As per the latest price till 7/4/2024.

  • 1 gram of gold = 8897 BDT
  • 1 gram of silver = 114 BDT
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To find the nisab in Bangladeshi Taka (BDT):

  • Nisab for gold: 87.48 grams × 7,000 BDT = 612,360 BDT
  • Nisab for silver: 612.36 grams × 90 BDT = 55,112.40 BDT

Since the nisab for silver is lower, it is more beneficial to use it. So, if you have cash and other assets worth more than 55,112.40 BDT, you need to pay zakat.

Types Of Wealth Subject To Zakat

Zakat is not just on cash. It also applies to:

  • Gold and silver
  • Savings and current accounts
  • Investments
  • Business inventory
  • Money lent to others

In this guide, we will focus on how to calculate zakat on cash.

How to Calculate Zakat on Cash

Here’s a step-by-step process

  • Determine Your Zakat Date: Each year, calculate your zakat using the same date on the Islamic calendar.
  • Calculate Total Cash: Add up all the cash you have. This includes:
    • Cash in hand
    • Cash in bank accounts (savings, current, or deposit)
    • Cash lent to others (if you are confident it will be repaid)
  • Deduct Debts: Subtract any immediate debts you owe from your total cash. This includes bills, loans, and other immediate liabilities.
  • Calculate Zakatable Amount: If the remaining amount is above the nisab (55,112.40 BDT), then you owe zakat. If it’s below, you do not.
  • Pay 2.5% Zakat: Calculate 2.5% of the zakatable amount. This is your zakat.

Example Calculation

Let’s go through an example to make it clear.

  • Determine Zakat Date: Suppose you choose the 1st of Ramadan each year.
  • Calculate Total Cash:
    • Cash in hand: 20,000 BDT
    • Cash in savings account: 50,000 BDT
    • Cash lent to a friend: 10,000 BDT
    • Total Cash: 20,000 + 50,000 + 10,000 = 80,000 BDT
  • Deduct Debts:
    • Loan repayment: 5,000 BDT
    • Utility bills: 2,000 BDT
    • Total Debts: 5,000 + 2,000 = 7,000 BDT
  • Calculate Zakatable Amount:
    • Total Cash: 80,000 BDT
    • Total Debts: 7,000 BDT
    • Zakatable Amount: 80,000 – 7,000 = 73,000 BDT
  • Pay 2.5% Zakat:
    • Zakat: 2.5% of 73,000 BDT = 0.025 × 73,000 = 1,825 BDT
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So, you need to pay 1,825 BDT as zakat.

Additional Tips

  • Use a Zakat Calculator: There are many online zakat calculators that can help you quickly determine how much zakat you owe.
  • Keep Records: Keep track of your cash and debts throughout the year to make the calculation easier.
  • Pay Promptly: Once you’ve calculated your zakat, pay it promptly to those in need.
  • Consult a Scholar: If you have any doubts, consult a knowledgeable Islamic scholar.


What Is Zakat, And Why Is It Important To Calculate It On Cash?

Zakat is one of the Five Pillars of Islam and refers to the obligatory act of giving a portion of one’s wealth to those in need. Calculating zakat on cash is essential because it ensures that wealth is purified and redistributed, promoting social justice and helping those less fortunate. By paying zakat in cash, Muslims fulfill their religious duty and contribute to the welfare of their community.

How Do I Determine If I Am Eligible To Pay Zakat In Cash?

To be eligible to pay zakat on cash, your total cash savings must exceed the nisab threshold, which is the minimum amount of wealth one must have before they are liable to pay zakat. The nisab is equivalent to the value of 3 ounces (87.48 grams) of gold or 21 ounces (612.36 grams) of silver. Check the current market value of gold or silver to calculate the nisab in your local currency. If your cash savings exceed this amount, you are required to pay zakat.

Should I Include All My Cash Savings When Calculating Zakat?

Yes, you should include all your cash savings when calculating zakat. This includes money in your bank accounts, cash in hand, and any other liquid assets that can be easily converted to cash. However, you should exclude any immediate liabilities or debts that you need to pay off. Subtract these liabilities from your total cash savings before calculating the 2.5% zakat.

When Is The Best Time To Pay Zakat In Cash?

Zakat is typically calculated and paid once a lunar year (Hijri year) has passed since you first became eligible ( your cash savings exceeded the nisab). Many Muslims choose to pay their zakat during the month of Ramadan due to its spiritual significance, but it is important to ensure that at least one lunar year has passed since you became eligible. You can also choose any other time of the year that is convenient for you, as long as you pay it annually.


Calculating zakat on cash may seem complicated, but it’s straightforward once you understand the steps. Remember to calculate your total cash, deduct any debts, and pay 2.5% of the remaining amount if it’s above the nisab.

By fulfilling this obligation, you are complying with your faith and contributing to your community’s well-being. We hope this guide has made calculating zakat on cash clear and straightforward for you. May your zakat be accepted and bring blessings to you and those in need.

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