Understanding your result
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.
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 principal, r is the quoted annual rate expressed as a decimal, m is compounding frequency, and t is months divided by twelve. Fractional periods use a fractional exponent. This is an estimate, not an actual-date bank ledger.
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
- Enter your deposit amount and the annual rate quoted for that term.
- Choose reinvestment or separate payouts.
- For reinvestment, select the compounding frequency in the deposit terms.
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.
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 mode uses simple interest and does not schedule individual payouts.
- Bank day-count and rounding rules may produce a different maturity amount.
Common questions
Does compounding affect payout mode?
No. The frequency selector applies only when interest is reinvested. Simple payout interest does not earn further interest in this model.
Is tax deducted from the result?
No. Gross interest is shown. Your final tax and any withholding depend on your circumstances and applicable rules.