Deposit Calculator

People can save money by putting it in a deposit account or a savings account in a bank. They receive a payment called interest. Interest is paid at a certain percent per year.

This online calculator will help you calculate how much you can make on a deposit.

Calculator
Amount of initial deposit.
%
Annual interest rate.
Total number of months.
Compounding Period.

Compound interest

With compound interest, the amount of interest paid is reinvested and earn interest itself.

Effective annual interest rate

The effective annual interest rate is commonly abbreviated as the affective rate. If the principal is $1, the value of the compound interest for a one-year period is the effective rate. In general, the effective rate is the ration of the compound interest earned for a one-year period to the principal as shown below:

\(Effective \space Rate = {Compound \space interest\space for \space a \space one-year \space period \over Principal} \)


»