Maturity balance and interest payouts
Cumulative deposits add interest to the balance. In payout mode, the maturity balance is the original deposit because interest is paid separately. Total receipts combine that returned principal with all modeled interest. Reverse solving targets total receipts, including any separate payouts, rather than the balance returned at maturity alone. The interval table includes a final partial interval. Reverse deposit solving uses unrounded arithmetic before money display; booked cent amounts can differ from the exact model target. Currency selection labels amounts without conversion.
For equal deposits made every month rather than one opening deposit, use the Recurring Deposit Calculator to account for the different time each installment earns interest.
The formula
P is the opening deposit, r the annual rate as a decimal, m compounding periods per year, and t the entered years. Months divide by twelve; days divide by the selected 360 or 365. Fractional terms use the same continuous-time exponent for cumulative treatment. To solve for principal, divide desired total gross receipts by (1 + modelled interest factor). Payout rows use simple proportional interest and leave principal unchanged.
Quarterly compounding versus payouts
A deposit of 10,000 for twelve months at 8%, compounded quarterly, grows to 10,824.32. Under simple payout treatment, interest totals 800 and the amount returned at maturity is 10,000. The payout model does not assume those payments are reinvested elsewhere.
How to use this calculator
- Choose returns from a deposit or deposit for desired receipts, then enter the amount and currency label.
- Enter the quoted annual rate and select the term unit. Day entry requires a 360- or 365-day divisor.
- Choose reinvestment with a compounding frequency or simple payouts with a schedule interval.
- Review gross interest, maturity balance, total receipts and the interval table.
Why a bank quote may differ
Banks can calculate short deposits, broken quarters, leap years, and payout discounts using product-specific conventions. For example, an actual-day calculation is not identical to treating every month as one twelfth of a year. Compare the estimate with the institution’s maturity quote before opening a deposit.
The rate field is editable because rates vary by institution, term, customer eligibility, and booking date. The default is an illustration, not a current bank offer. This tool also excludes any early-withdrawal penalty or reduction in the applicable rate.
A short-term deposit and a receipts target
A 10,000 deposit at 8% simple interest for 30 days on a 365-day divisor produces 65.75 of gross interest and 10,065.75 of total receipts. Under payout treatment, the balance returned at maturity remains 10,000. The desired-receipts view solves for the opening amount using the same selected convention; it does not fetch a bank’s booking quote.
Assumptions & limitations
What this calculation assumes
- The quoted rate stays unchanged for the entered term.
- The deposit is held to maturity.
- Interest is calculated before tax or withholding.
What to keep in mind
- Payout rows use simple proportional interest. They do not reproduce discounted monthly bank payouts or reinvest payments elsewhere.
- Actual booking dates, bank rounding, tax, withholding and early-withdrawal penalties are excluded. Fractional intervals are mathematical planning estimates.
Common questions
Does compounding affect payout mode?
Reinvestment frequency affects cumulative treatment. In payout treatment, the separate payout interval changes the table spacing while total simple interest stays unchanged.
Is tax deducted from the result?
No. Gross interest is shown. Your final tax and any withholding depend on your circumstances and applicable rules.
Sources & further reading
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