Deposit Calculator

Compounding means the interest earned each period is added to the principal, so future interest is calculated on a larger balance. For example, with monthly compounding at 12% per year, each month earns 1% on the growing total — resulting in an effective annual return of about 12.68%, not just 12%.

Simple interest is calculated only on the original principal: Interest = Principal × Rate × Time. Compound interest is calculated on the growing balance (principal + accumulated interest). Over long terms, the difference is substantial — for example, €10,000 at 8% over 10 years gives €8,000 with simple interest but €11,589 with annual compounding.

The more frequently interest compounds, the higher the final amount: daily > monthly > quarterly > annually > no compounding. In practice, the difference between monthly and daily compounding is minimal, but monthly vs. annual compounding can add up significantly over 5+ years.

Compound interest formula: S = P × (1 + r/n)^(n×t), where P is the initial amount, r is the annual rate (as a decimal), n is the number of compounding periods per year, and t is the term in years. For simple interest: S = P × (1 + r × t).

The effective annual rate accounts for compounding within a year: EAR = (1 + r/n)ⁿ − 1. For example, a 12% nominal rate compounded monthly gives an EAR of about 12.68%. Banks must disclose the EAR so you can compare products fairly.

Almost always yes, especially over longer terms. Without compounding, you earn interest only on the original amount. With monthly compounding at 6% over 5 years, €10,000 grows to about €13,489 — compared to €13,000 with simple interest. The difference grows larger with time.

Longer terms generally yield more due to compounding, but lock up your funds. The optimal term depends on your goals: for an emergency fund, choose a short-term or demand deposit. For long-term savings, a 1–3 year fixed deposit with monthly compounding typically offers the best balance of rate and flexibility.

Yes. If your deposit rate is lower than inflation, your real purchasing power decreases even as the nominal balance grows. To compare, subtract the inflation rate from your deposit rate — the result is your approximate real return. Always consider inflation when evaluating savings options.

No, the calculator shows gross returns before tax. Interest income is taxable in most countries. Consult your bank or a tax adviser for the applicable rates in your country.

Yes. The calculator supports RUB, USD, EUR, UAH and PLN. The calculation logic is identical for all currencies — only the display symbol changes. Select your preferred currency in the initial deposit field.