Compound Interest Calculator with Monthly Deposits
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.
- 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
- 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