What the deposit and savings calculator can do
Use this calculator to check the return on almost any kind of deposit — one-month, quarterly, annual, or multi-year fixed terms. It also works for estimating the return on a savings account or a foreign-currency deposit, as long as you know its annual interest rate.
Note that the calculator shows the net return — after deducting tax on investment income — the same way your bank applies it when it credits interest to your account.
How to calculate deposit interest
You only need three figures: the deposit amount, its interest rate, and the term. We explain each one below.
Deposit amount
This is the sum you place into a fixed-term deposit or savings account. Want to check the return on 10,000 locked in for six months? Just enter that amount into the calculator.
Interest rate
A deposit's rate is always quoted per year, even if the term is shorter. Example: a bank offers a one-year deposit at 5%. If you open a 3-month deposit at the same annual rate, you'll earn proportionally less over that period — around 5% ÷ 4 = 1.25%, since three months is a quarter of a year. Tax on investment income is then deducted from that amount.
Deposit term
This is how long the deposit runs — a 6-month deposit matures after six months, when you get your money back plus interest. Breaking a deposit early usually means losing most or all of the accrued interest. If you're not sure you won't need the money sooner, a savings account may suit you better — you can withdraw at any time without losing interest, though its rate can change.
Why more frequent compounding pays off
Say you have 10,000 and you're choosing between a one-year deposit at 4%, or opening four consecutive 3-month deposits at the same 4% annual rate. Either way your money is working for 12 months — the difference is how often interest is added to the principal.
With a single one-year deposit, interest is added just once, at maturity. With four quarterly deposits, each new deposit starts with a slightly larger principal, since the previous deposit's interest gets folded in. That's why the second option earns a little more despite an identical nominal rate — this is the effect of compounding. It's also why savings accounts with monthly compounding can outperform a deposit with a single payout, even at a seemingly lower rate.
Net return and tax
Interest earned on a bank deposit is subject to tax on investment income — the rate and rules vary by country, but the bank typically withholds it automatically when it pays out the interest, so you don't need to file anything yourself as a private individual. Business accounts are usually handled differently, with the tax settled as part of the business's own tax return. Our calculator shows the return after this deduction, so you see the amount you'd actually receive.
