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Compound Interest
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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