Deposit Calculator
Calculate deposit returns with compound interest. Choose capitalization frequency (monthly, quarterly, yearly) and add optional monthly contributions.
How to Calculate Deposit Returns
- Enter the initial deposit amount you plan to place in the bank.
- Set the annual interest rate offered by the bank.
- Enter the deposit term in months and choose the capitalization frequency (monthly, quarterly, or yearly).
- Optionally add a monthly contribution amount, then click Calculate to see the final balance, total interest earned, and effective annual rate.
Référence rapide
| De | Vers |
|---|---|
| $1,000 · 5% · 1yr | $1,050 |
| $5,000 · 4% · 3yr | $5,624 |
| $10,000 · 6% · 5yr | $13,382 |
| $10,000 · 3% · 10yr | $13,439 |
| $25,000 · 5% · 10yr | $40,722 |
| $50,000 · 7% · 20yr | $193,484 |
Cas d'utilisation
- •Comparing bank deposit offers to find the highest effective yield for your savings.
- •Planning a savings goal by seeing how regular monthly contributions grow over time.
- •Evaluating the impact of capitalization frequency on the final deposit amount.
Formule
Compound interest with periodic additions. Balance grows each capitalization period by: Balance × (1 + r/n), where r is annual rate and n is periods per year. Monthly additions are added before each period's interest calculation.
Questions fréquemment posées
What is capitalization of interest?
Capitalization (compounding) means earned interest is added to the principal, so future interest is calculated on a larger amount. More frequent capitalization yields higher returns.
Which capitalization frequency is best?
Monthly capitalization gives the highest effective yield because interest compounds more frequently. Yearly capitalization gives the lowest.
What is the effective rate?
The effective rate is the annualized return that accounts for compounding. It is always higher than the nominal rate when interest is compounded more than once per year.
How do monthly additions affect the result?
Regular additions significantly increase the final amount through compound growth. Each addition earns its own interest for the remaining term.