Mobile Wallet Cash-Out Charge Calculator
What a wallet cash-out costs once the percentage charge and the VAT on it are added.
Recent
Formula
How the calculation works
A wallet charges a percentage to turn a balance into cash, then charges VAT on that percentage -- not on the amount. So the cost is the charge plus 15% of the charge, which comes to a little over the headline rate. The person receiving the cash gets exactly what was asked for; the extra comes off the sender's balance.
Working it out matters when a cash-out is large or repeated: a charge that looks like loose change on a 500 transfer is real money on 50,000, and the VAT on top is the part most people leave out of the sum.
Common mistakes
- Taking 15% of the whole amount instead of 15% of the charge -- on 5,000 that is the difference between 13.88 and 750.
- Assuming the receiver gets less. The receiver gets the full amount; the sender pays the charge.
- Comparing a 1.85% cash-out with a 2% transfer as if they were the same service -- one gives cash, the other moves money to a wallet.
When to use it
- Use it before a large cash-out, or to compare a cash-out with a transfer when only one of them will do.
- The rate is the one your wallet currently charges; enter that, not a rate you remember from last year.
Worked example
5,000 cashed out at 1.85%: charge 92.50, VAT 13.88, so 5,106.38 leaves the balance.
Common questions
Is the VAT on the whole amount?
No, only on the charge. So on 5,000 the VAT is 13.88, not 750. Assuming 15% of the whole amount is the common mistake.
How much does the receiver get?
Exactly the amount you asked for; the charge and VAT come off your balance separately. That is why the total cost is more than the amount.
Related tools
-
Land Area Converter
Convert between bigha, katha, shotok, acre and square feet.
-
Gold Weight Converter
Convert gold weight between bhori, ana, grams and tola.
-
Zakat Calculator
Work out zakat at 2.5% on wealth above the nisab threshold.
-
Gratuity Calculator
Gratuity due on leaving a job, counted per completed year of service.
-
Remittance Cost
What a remittance really costs once the fee and a weak exchange rate are counted.
-
Compare Two Job Offers
Compare two offers on total yearly value, counting bonus, allowances and commuting.
-
Gold Loan Value
How much a loan against gold is worth, from weight and purity.
-
Property Tax and Registration
The cost of buying a property beyond the price, due on the day.