# Compound Interest Calculator with Monthly Deposits

 Principal (starting amount) \$ Monthly Deposit \$ Interest Rate, APY % Compounding Frequency: Daily Time years Income Tax Rate %

This calculator demonstrates how monthly deposit and compound interest can dramatically increase future value of any investment. It computes the compound interest earned when money is deposited into a money-market or savings account. Every month, additional amount is deposited, adding to the principal. Set monthly deposit to 0 to see how principal grows with compound interest.

#### Input Values

• Principal -- Starting sum of money deposited into a bank account
• Monthly Deposit -- Additional principal amount deposited into the account every month
• Interest -- Interest rate specified in APY, with daily compounding freqency
• Time -- number of years to calculate future value
• Compounding Frequency -- Specifies how many times a year, the interest is computed by applying interest rate to the principal (interest = interest_rate x principal).
• Annual Tax Rate -- Percent of the interest income that is subtracted every year to pay income tax

#### Result Explanation

• Future Value -- Value of investment after completion of time (Principal + Monthly Deposits + Compound Interest - Taxes)
• Total Principal -- Principal + Sum of Monthly Deposits
• Total Interest -- Total Interest earned minus annual taxes
• Total Tax -- Sum of all taxes paid each year on interest earned

Ad photo used under Creative Commons from poeloq