Deposit Calculator - Savings & Fixed Deposits

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Planning to open a savings account, certificate of deposit (CD), or fixed deposit? Our Deposit Calculator helps you predict exactly how much your money will grow — whether you're earning simple interest or compound interest.

To use the calculator, enter your initial principal amount, the interest rate (either annual or monthly), the deposit term, and choose whether interest compounds. If you enable compounding, select the compounding frequency (monthly, quarterly, or annually). The calculator instantly shows your final balance, total interest earned, and a detailed breakdown of your assumptions.

Understanding compounding is key to maximizing your savings. Albert Einstein famously called compound interest "the eighth wonder of the world" — and for good reason. Even small differences in compounding frequency can add up to thousands of dollars over the years. A 5% rate that compounds monthly will grow noticeably faster than the same rate compounded annually.

When comparing deposit products, always look at the APY (Annual Percentage Yield) rather than the nominal rate. The APY already factors in compounding, giving you an apples-to-apples comparison. Our calculator shows both the nominal rate you enter and the equivalent annualized rate for monthly inputs.

Formel
Simple: A = P × (1 + r × t) | Compound: A = P × (1 + r/n)^(n×t)

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What is the difference between simple and compound interest?
Simple interest is calculated only on the original principal amount. Compound interest is calculated on the principal plus any accumulated interest — you earn "interest on interest". Compound interest grows faster over time, especially with frequent compounding.
How often is interest compounded in real deposits?
It varies by product and bank. High-yield savings accounts often compound daily or monthly. Certificates of Deposit (CDs) may compound monthly, quarterly, or annually. Always check the specific terms of your deposit product.
Should I use annual or monthly rate?
APY (Annual Percentage Yield) already accounts for compounding and is the best way to compare deposit products. APR or nominal rates may be quoted as monthly or annual — make sure you know which one you're entering. Our calculator converts monthly rates to annual automatically.
How much difference does compounding make?
With higher rates and longer terms, compounding makes a huge difference. For example, $10,000 at 5% annual rate over 10 years: simple interest gives $15,000, while monthly compounding gives $16,470 — almost $1,500 more. The effect compounds over longer periods.

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