Calculate the interest on the deposit. Deposit calculator online

Today I will tell and show you how to easily and quickly produce calculation of interest on a deposit using the formula, and how to calculate interest on a deposit with capitalization according to the formula and in MS Excel. What is it for?

Firstly, in order to find out exactly what you will get in monetary terms from the placement and make a conclusion about whether such a deposit is suitable for you or not.

To be able to compare the conditions of different banks.

Secondly, in order to check the bank: does it correctly charge you the interest on the deposit and does it use the correct calculation principle at all? Of course, now this is happening automatically, but a failure can always occur, and the interest is calculated incorrectly, most likely not in your favor. If you do not notice this, then the bank - even more so. In my practice, this happened once.

Deposit interest calculation: formula.

If you make a deposit with simple interest (without capitalization), then they can be easily calculated using the following formula.

The formula for calculating interest on a deposit:

S p = (S in *% * N d) / N g

S in - the amount of the deposit;

% - interest rate in the form decimal(for example, at 15% per annum,% = 0.15);

N d - the number of days of interest accrual;

N g - the number of days in a year (365 or 366).

To accurately calculate the interest on the deposit, you need to know exactly how many days the bank will accrue interest to you (this is indicated in the terms of the agreement). For example, the date of crediting funds may or may not be taken into account. The refund date is usually not included.

Calculation of interest on deposits with replenishment and / or withdrawal is made by separately calculating for each period of being on the deposit of a certain amount and summing up these results.

Let's consider how the formula for calculating interest on a deposit works using examples.

Example 1. Question: I am making a deposit in the amount of 10,000 rubles for 180 days at 15% per annum. How much interest will I receive for the entire period?

Answer: (10000 * 0.15 * 179) / 365 = 735.62 rubles. (179 - because the date of return of the deposit is not taken into account)

Example 2. Question: I am making a deposit in the amount of 50,000 rubles for a year at 16% per annum, with monthly interest payments. How much will I receive monthly from it?

Answer: It will depend on how many days in each month your amount will remain in the deposit account. For example, for months with 30 days - (50,000 * 0.16 * 30) / 365 = 657.53 rubles. For months with 31 days - (50,000 * 0.16 * 31) / 365 = 679.45 rubles. In February, as well as in the month of placement and the month of withdrawal of the deposit - less, based on the number of days that the deposit amount will be on the account.

Example 3... Question: I have a deposit with replenishment and withdrawal at 10% per annum. On January 1, there were 30,000 rubles on it. On January 15, I replenished my account with 5,000 rubles, and on January 20, I removed 20,000 rubles from the account. How much interest will I receive for January?

Answer: In this case, the calculation of interest on the deposit should be carried out as follows. First, we count the number of days that each amount was in the account:

- 30,000 - from 1 to 14 - 14 days;

- 35,000 - from 15 to 19 - 5 days;

- 15,000 - from 20 to 31 - 12 days.

Now we calculate the interest on the deposit: (30,000 * 0.10 * 14) / 365 + (35,000 * 0.10 * 5) / 365 + (15,000 * 0.10 * 12) / 365 = 212.34 rubles.

Calculation of compound interest on the deposit.

The formula for compound interest on the deposit:

S p = S in * (1 +%) n -S in

S p - the amount of interest on the deposit;

S in - the amount of the deposit;

% - the interest rate during the capitalization period in the form of a decimal fraction. % = p * N d / N g(p is the interest rate on the deposit in the form of a decimal fraction, N d is the capitalization period in days (months), N g is the number of days (months) in a year);

n is the number of capitalization periods.

As you can see, for the calculation we need the exponentiation function. It is available on a standard Windows calculator. To see it, change the calculator's view to “engineering” through the menu. X y is the exponentiation function. For example, to raise 1.01 to the 12th power, press on the calculator in sequence: 1.01 -> X y -> 12 -> =.

Example... Question: I am making a deposit in the amount of 50,000 rubles for a year at 15% per annum with monthly capitalization of interest. How much interest will I receive for all the time?

Answer: Let's calculate interest rate during the capitalization period, that is, in one month:% = 0.15 * 1/12 = 0.0125. Now let's calculate the interest on a deposit with capitalization: 50,000 * (1 + 0.0125) 12 - 50,000 = 8037.73 rubles.

Calculation of the contribution with capitalization of interest in Excel.

And in conclusion, I will show you another simple way to quickly calculate the interest on a deposit with capitalization. For this we need a standard Excel spreadsheet editor (MS Excel).

We open Excel, stand on any cell in the table and call the function by pressing the f x button to the left of the data entry line. From the list of proposed functions, select BS - future value. If this function is not in the list that appears (the last 10 used are displayed there), then find it through the search.

Press the BS function and in the table that opens, enter the data you need:

- Rate - the rate on the deposit in the form of a decimal fraction during the capitalization period(that is, if you have a deposit with monthly capitalization, then we divide the rate on the deposit by 12 months and enter the result into this cell);

- Nper - the number of capitalization periods. For example, if you have a deposit for a year, and the interest is capitalized monthly, then we enter 12 here;

- Plt - we do not enter anything. This field is used when there is a monthly payment of a fixed amount;

- Ps - the current (reduced) amount of the deposit, that is, the amount that you put on the deposit.

- Type - do not enter anything.

As a result, you will immediately see in the form the amount into which your deposit will become, together with interest for the entire period - the future value of the deposit. If you subtract the initial amount of the deposit from it, you will receive the amount of the accrued compound interest directly.

For example, this is how I calculated the future value of the contribution for the last example above:

As you can see, the result is absolutely the same as for when calculating the contribution using the compound interest formula (see above) - 58,037.73 rubles - the contribution together with interest or 8037.73 rubles only interest.

Deposit interest calculation: calculator.

You can also use the simplest method for calculating interest on a deposit - posted on the bank's website or some third-party financial website. However, there are some nuances here: you just cannot know which calculation formula is included in this calculator, what and how it calculates: how the interest on the deposit should actually be calculated (what I told and showed you today) or as it is beneficial to the bank.

If you have any questions - ask them in the comments. Until we meet again on the site that will increase your financial literacy and teach you how to effectively manage your personal finances and family budget.

Almost every person, before placing savings in one of the banks in Moscow, seeks to calculate the interest on the deposit. However, not everyone is taken into account: in order to correctly calculate the contribution, one should focus not only on the interest rate. In particular, the replenishment of the deposit and the capitalization of interest affect the profitability. Capitalization on a deposit is the addition of accrued interest to the amount of the deposit, due to which the subsequent income is accrued taking into account the indicators obtained. The resulting amount of the deposit is determined taking into account the possible replenishment of the account and the withdrawal of money. When you deposit additional funds, the profitability will increase, and when you withdraw money, it will fall.

You can correctly calculate the online amount of income in Moscow banks, taking into account all the conditions, using the online deposit calculator. Many people do not know how to determine the effectiveness of a bet, and they get incorrect values. A calculator is needed in order to make calculations accurate and at the same time easy for a bank client.

After filling in the required positions (amount, placement period, interest rate, capitalization conditions) in the windows of the online program, you can see how much income you will receive during the billing period. The calculation system takes into account additional conditions. But the contribution calculator will accurately form a preliminary calculation and show the total amount of income.

You can make calculations on Vyberu.Ru or on the bank's website. The calculator of deposits with capitalization on our website shows the amount at the end of the billing period, which is formed taking into account the rate for each program for 2019.

Calculation of the profitability of the deposit

Perhaps the main question that worries every depositor is how much income he will receive from placing a deposit in a bank. The calculator of deposits with capitalization makes it possible to determine the amount that will be returned by the bank.

To calculate online profitability, you first need to determine how the interest will be calculated - with or without capitalization. To calculate interest without capitalization in the online calculator I will select.Ru, you need to enter the necessary deposit parameters in its fields. Under the filter windows, you need to select "To a separate account" in the interest payment column and click "Calculate yield". To perform the same operation, but to determine the total amount with capitalization, you need to set the terms of the deposit and mark the item "Capitalization".

Compare your results. If you specify the same initial data in terms of the amount and storage period of the deposit, the final payment from the bank will be higher if you use a deposit with capitalization. This is due to the fact that the accrued interest is added to the amount of the deposit, and while maintaining the same rate, the initial amount of funds becomes more and more each time, therefore, the profitability of such a deposit is higher. The less the client withdraws funds, the more the final profit on the deposit will be.

Each financial institution has its own terms of deposits and options for calculating interest. To determine the most profitable program from the bank for yourself, you should determine which rate will be effective for you. To do this, determine how much income you would like to receive from placing funds in the bank for a certain period.

The accrual of interest is determined by the following formula: the amount of interest for the entire term of the deposit is divided by the initial amount of money and multiplied by the number of days in a year, divided by the number of days of the deposit. The resulting result must be additionally multiplied by one hundred.

To see how this formula works on specific example, set the parameters you are interested in in the calculator and check if the calculated level of income from the deposit meets your expectations.

It is these calculations that banks themselves use when determining the conditions of a certain deposit program. The specific indicator of the interest rate and additional conditions that may affect the profitability of savings differ.

When opening a deposit, it is important to consider whether the interest, which is charged monthly, is added to the total amount of the deposit, or whether they are accumulated separately. Under this condition, a low rate can also be effective if, in monetary terms, income increases for each subsequent month of keeping money in the bank. It is important to discuss this issue with the bank's managers before signing the contract.

How to choose the best investment?

To find the optimal savings program from the bank, first of all, you should pay attention to the bank's reliability. On Vyberu.Ru, ratings of banks are collected, which are formed, including taking into account this indicator. It is also necessary to determine the size of the interest rate and methods of calculating money. If the rate is noticeably higher than the average, this may be a signal that the bank is in serious trouble. It is better to open a deposit under small percentage in a reliable financial institution and get a small income (find out using an online calculator) than counting on large accruals in an organization that can go bankrupt at any time.

Better to invest money in banks participating in state system deposit insurance. This will give a guarantee of a certain amount of money back under any circumstances. The size of the rate and methods of calculating interest should be discussed with the bank's employees. All these conditions must be spelled out in the contract. If you have a significant amount to deposit, it is better to split it into several parts and open deposits in different banks.

The online deposit calculator will help you quickly calculate the interest on any deposit, including capitalization, replenishment and taxes, as well as show the interest calculation schedule. If you are planning to open a deposit, then the calculator will help you calculate the potential return in advance.

Interest capitalization

In case of a regular deposit, the bank pays the accrued interest to the depositor on a monthly basis (or at another frequency specified in the terms of the agreement). This is called “simple interest”. A deposit with capitalization (or "compound interest") is a condition under which the accrued interest is not paid, but is added to the amount of the deposit, thus increasing it. In this case, the total income from the deposit will be higher.

With the help of a deposit calculator, you can compare the results of calculating two identical deposits (with and without capitalization) and see the difference.

Effective interest rate on the deposit

This characteristic is relevant only for deposits with interest capitalization. Due to the fact that interest is not paid, but is used to increase the amount of the deposit, it is obvious that if the amount of the deposit increases monthly, then the newly accrued interest on this amount will also be higher, as well as the final income.

Formula for calculating the effective rate:

where
N - the number of interest payments during the term of the deposit,
T is the term for placing the deposit in months.

This formula is not universal. It is suitable only for deposits with capitalization once a month, the period of which contains a whole number of months. For other deposits (for example, a deposit for 100 days) this formula will not work.

However, there is also a universal formula for calculating the effective rate. The disadvantage of this formula is that you can get the result only after calculating the interest on the deposit.

Effective rate = (P / S) * (365 / d) * 100

where
P - interest accrued for the entire period of the deposit,
S - the amount of the deposit,
d - term of the deposit in days.

This formula is suitable for all deposits, with any terms and any frequency of capitalization. She simply calculates the ratio of the income received to the initial amount of the contribution, bringing this value to the annual interest. Only a small error may be present here if the period of the contribution or part of it fell on a leap year.

This is the method used to calculate the effective rate in the deposit calculator presented here.

Income tax on deposits

tax code Russian Federation provides for taxation of deposits in the following cases:

• If the interest rate on a ruble deposit exceeds the value of the key rate of the Central Bank of the Russian Federation at the time of the conclusion or prolongation of the agreement, increased by 5 percentage points.
• If the interest rate on a foreign currency deposit exceeds 9% .

The tax rate is 35% for residents of the Russian Federation and 30% for non-residents.

In this case, the tax is not levied on the entire income received from the deposit, but only on the part received as a result of the excess of the interest rate on the deposit of the threshold rate. In order to calculate the tax base (taxable amount), you must first calculate the interest paid at the nominal deposit rate, and then make a similar calculation at the threshold rate. The difference between these amounts will be the tax base. To obtain the amount of tax, it remains to multiply this amount by the tax rate.

Our deposit calculator will calculate your deposit including taxes.

Each depositor, placing a deposit in a bank, wants to know how much income can be received at the end of the term. Today, there are two main methods of calculating interest: complex and simple, and each financial institution calculates profit in its own way. In this article, we will consider how to calculate the interest on the deposit.

What are the contract schemes

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Interest calculation schemes are complex and simple, while simple circuit accrual is that interest is charged either at the end of the contract, or on a separate account from which the client can withdraw it once a month or quarter.

The second scheme assumes the capitalization of interest, that is, the accrued interest is added to the amount of the deposit, increasing it. In the next period, interest income is calculated from the already increased deposit amount.

A complex scheme is more profitable because it allows you to get more income. However, the rates for such programs are also lower.

Basic formulas

Simple option

The formula for calculating the interest on the deposit must be spelled out in the terms of the agreement.

It looks like this:

, where:

Let's give an example. The depositor put on the deposit 10,000 rubles... Annual rate - 10% annual. The deposit program does not imply replenishment and capitalization.

According to the calculation for this way we get:

Thus, for 3 months of the deposit, the client will receive interest in the amount of 246.6 rubles.

Simple interest is also applicable in cases of deposits being replenished. In this case, the calculation is carried out as follows.

Customer put 10,000 rubles under 10% annual, for a period of 3 months... The deposit was replenished twice for 1000 rubles... The first one is through 30 days, the second - two months later.

Thus, the client will receive 82.2 rubles in the first month before replenishment of the deposit, and 180.8 rubles and 295.9 rubles in the second and third periods, respectively.

Difficult version

The complex method of calculation involves the capitalization of interest. Let's take a look at the diagram using an example. Client placed a deposit 100,000 rubles at rate 8,7% , for half a year. Terms of deposit - p. The calculation is done as follows.

S = 100,000 * (1 + 8.7 * 30/365/100) 6 - 100,000 = 4,367.9 rubles.

At the end of the deposit period, the client will receive 4367.9 rubles additional profit. It is very easy to check the calculation using the simple interest formula. To do this, the term of the deposit is divided into separate periods and the balance is taken for the calculation, taking into account previous payments and accruals.

Month	Deposit amount	Interest rate	Number of days	Interest amount	Deposit amount at the end of the period
1	100000	8,7%	30 days	715,1	100715,1
2	100715,1	8,7%	30 days	720,18	101435,28
3	101435,28	8,7%	30 days	725,34	102160,62
4	102160,62	8,7%	30 days	730,52	102891,14
5	102891,14	8,7%	30 days	735,74	103626,88
6	103626,88	8,7%	30 days	741	104367,88

Thus, it can be seen from the table that the compound interest formula is easier to use than the calculation of the contribution with capitalization using simple interest.

Substituting the values ​​for deposits into the formulas, you can independently calculate the final income

For an account with replenishment

Deposit programs with replenishment also have features of interest accrual.

The annual rate for such deposits is somewhat lower. This is due to the fact that during the period of the agreement, the refinancing rate may decrease, and the deposit will become unprofitable for the bank.

Let's give an example of calculating interest on a deposit with replenishment.

The client opens a deposit for the amount 70,000 rubles at rate 7% per annum for 3 months.

For the first month, the income will be:

After replenishment of the deposit on 3000 rubles, the account is the amount in 73,000 rubles.

Recalculation for the year:

Income for the remaining 60 days:

The total amount of interest on the deposit for three months will be 1242 rubles of the amount in 73,000 rubles... And the final amount of the deposit 74242 rubles.

Important caveats on calculating deposit interest

Effective rate

The effective interest rate allows you to estimate the real income from a particular deposit. It is this rate that allows you to compare various offers from banks and choose the most profitable ones.

Since the capitalization of deposits significantly affects the income from the deposit, the effective rate is calculated using the following formula:

S effective = ((1 + I / 100 / n) n - 1) x 100

, where:

Let's present the calculation using an example. The deposit is placed in the bank for 1 year at 10% per annum... Interest capitalization - monthly.

S effective = ((1 + 10/100/12) 12 - 1) x 100 = 10.43%

In this case, the effective annual interest rate will be 10,43% .

That is, when choosing a deposit, it is necessary to compare the effective rates. There are enough online services to calculate rates on deposits. Similar calculators can be found on banks' websites.

Taxing

Tax is levied on any income of a citizen of the Russian Federation, established by law... In the case of a bank, such income is recognized as the percentage of excess of the refinancing rate.

As of August 2019, no refinancing rate has been set. From January 1, 2019, the Central Bank of the Russian Federation decided not to allocate refinancing as a separate rate, but to equate it with the key rate.

The key rate in 2019 is 11% , which means that if the interest on the deposit is higher than this value, then such income must be subject to personal income tax - 35% .

Let's turn to the legislation. Tax data that are paid individuals from income, is considered by Article 214.2 Tax Code Of the Russian Federation with changes and additions as of the date of circulation. So, you can make simple calculations.

If the client places a deposit for 10,000 rubles for a period of 1 year at a simple interest rate of 12.3%, then after the expiration of the contract he will have to pay to the tax office:

• 10000 *12,3% = 1230 rubles;
• 10000*11% = 1100 rubles;
• (1230-1100)*35% = 45.5 rubles.

Thus, in the example under consideration, it can be seen that taxes will amount to 45.5 rubles... The bank is in charge of deducting taxes, and the client will simply receive a reduced amount.

Time dependence

The final income from the deposit depends on the timing and it is quite simple to calculate it manually.

With a deposit of 10,000 rubles at a rate of 8% per annum, we will make the calculation as follows:

• determine what the daily charge is equal to 1% : 10000/100 = 100 rubles;
• multiply by the number of percent that the bank gives: 100 * 8 = 800 rubles;
• add a percentage to the body of the contribution: 10000 + 800 = 10,800 rubles.

If the money is placed not for a year, but for a different period, then the percentage is more difficult to calculate. Let's look at the same example, but the term of the deposit will be 182 days.

For the year, the profitability will be 800 rubles... Per 1 day year the depositor will receive: 800/365 = 2,192 rubles... This is the cost of the deposit, calculated daily. The terms of the contribution in the example say that the term is 182 days, respectively, it is necessary to multiply this period by daily income: 182 * 2.192 = 398.9 rubles.

In banks, the terms of deposits are indicated in months or years, but days are still used in the calculation.

So, frequent terms are:

• 1 month - 30 days;
• 3 months - 90 days;
• six months - 182 days;
• year - 365 days.

With a replenishing deposit, the process is more laborious. In this case, you can use the online calculator.
An example of how to check the total

When calculating on the calculator, an incorrect amount may be displayed, since a technical factor always exists. If the deposit was opened earlier and you have an account statement with all the accruals on hand, then it is very easy to check the correctness of the accrual of income.

For example, on February 20, a client opens a deposit with quarterly capitalization. Deposit amount 10,000 rubles, bid 10% ... Term - 9 months or 272 days... Took off on August 15 5000 rubles.

Days	date	Coming	Consumption	Account amount
	20 february 2019	10000	0	5000
49	10 april 2019	30000	0	35000
42	20 May 2019	535	0	35535
85	15 august 2019	0	5000	30535
6	20 august 2019	744,77	0	31324,95
91	20 november 2019	789,95	0	32027,83

• From February 20 to April 10: 10,000 * 9/100 * 49/365 = 120.8.
• From April 10 to May 20: 40,000 * 9/100 * 42/365 = 414.2.
• From February 20 to May 20: 120.8 + 414.2 = 535.
• From May 20 to August 15: 35535 * 9/100 * 85/365 = 744.77.
• From August 15 to August 20: 30535 * 9/100 * 6/365 = 45.18.
• From May 20 to August 20: 744.77 + 45.18 = 789.95.
• From August 20 to November 20: 31324.95 * 9/100 * 91/365 = 702.88.

The choice of deposit products in each commercial bank is quite large, sometimes it is quite difficult for a client to decide which deposit to choose in order to get the maximum benefit from cooperation with the bank. Undoubtedly, if you want to deposit money at interest for a long time, then the most reasonable option would be to choose an offer with interest capitalization and replenishment. As for replenishment, this is an unlimited opportunity to replenish a deposit account with a free amount of funds at any time, thereby increasing your income. But as for the capitalization of interest, this service raises many questions among potential investors. We will answer the question of how the deposit with interest capitalization is calculated, and also consider the features of these deposits, find out how beneficial they are for the user, and give several examples of the calculation.

What is capitalization

First, let's consider what the capitalization of interest is in simple terms. In fact, this is an increase in the amount of the deposit due to the addition of interest accrued to it for a certain period. We will also consider an example of the situation: you put savings in the amount of 30,000 rubles into a deposit account in a bank. A month later, the bank charged you interest, for example, in the amount of 100 rubles, and thus, the body of your deposit became equal to 30,100 rubles, the next month the bank again charged you interest, which was added to the deposit, and so on, throughout the entire term of the deposit.

By the way, please note that many banks extend the term of the agreement for the same period, but the nuance is that interest rates may differ, since they are valid only for the period for which you entered into the agreement, the extension is carried out at the current rates of the bank.

In different banks, the terms of deposits for which the capitalization of interest is provided may differ significantly. The return on the deposit will largely depend on the type of capitalization. By the way, if you pay attention, the bank offer contains two rates for the same deposit parameter. This means that the bank specifies a simple interest rate and a capitalization rate. Further, we will definitely consider all the examples of how the accrual of interest on the deposit, formulas and examples is carried out.

How interest is calculated

In fact, the calculation of the income on the deposit will largely depend on the terms of the agreement. The fact is that all banks can charge interest on a deposit in different ways, for example, daily, weekly, monthly, once a quarter or annually. Accordingly, it is on this scheme that the profitability of the deposit will depend.

The most common practice is to charge interest on a daily basis. But this does not mean that capitalization is carried out with the same frequency, since it can be only once a month, or quarter. Therefore, before choosing one or another deposit offers, carefully read the agreement or consult with a bank employee to explain exactly how and when the bank will charge you interest and in what amount.

You should be especially careful with proposals where the interest rate is floating. This suggests that at the beginning, or, conversely, at the end of the period, the percentage will be higher. Then, usually in this case, the minimum rate is much lower than the inflation rate and fluctuates around 3%, while the highest value can reach 12%.

The formula for calculating simple interest

First, let's look at how the formula for calculating the interest on the deposit will look like:

S = (C × P × D) / G where:

• S is the amount of profit;
• C is the amount of savings;
• P - rate in the form of a fraction (for example, if the rate established by the contract is 12%, then it will look like this "0.12");
• D - the number of days of the deposit;
• G is the number of days in a year.

Let's give an example with the following investment parameters:

• term - 6 months from September 22, 2016 to March 22, 2017);
• the amount of the deposit is 25,000 rubles;
• rate - 8% per annum;
• the term of the agreement in days - 181;
• the number of days in a year is 365.

S = (25000 × 0.08 × 181) / 365 = 991.78 rubles.

Consequently, according to this example, the depositor at the end of the contract can receive 25,991.78 rubles. But this is provided that the bank calculates interest only at the end of the contract. In practice, the calculation and transfer of profits occurs with a certain contractual frequency. For example, once a month, day or quarter. In this case, it will not be difficult to calculate the profit using this formula. let's look at a few more examples.

• Daily profit: S = (25000 × 0.08 × 1) / 365 = 5.47 rubles.
• Monthly profit: S = (25,000 × 0.08 × 30) / 365 = 164.38 rubles.
• Quarterly profit S = (25,000 × 0.08 × 92) / 365 = 504.11 rubles.

This was an example of calculating a deposit without taking into account the capitalization of interest, replenishment and partial withdrawal. When opening a deposit account, carefully read the agreement, namely when and on what dates the bank calculates interest for you, and how you can get it. There may be several options here, for example, to a separate account or to bank card, as well as the possibility of making a profit before the end of the contract. For example, despite the fact that the bank transfers interest on a monthly or even daily basis, you can only receive it at the end of the contract, together with the body of the deposit.

Calculation of interest with capitalization

The formula for calculating annual interest on deposits, taking into account their capitalization, will look somewhat different. How she looks like:

S = C × (1 + P) k-C, where:

• C - body of the deposit;
• S is the amount of profit;
• P is the percentage;
• k is the number of capitalization periods during the term of the agreement.

There is one nuance here, which is that you need to separately calculate the percentage using the following formula:

P = R × L / D, where:

• R - the rate under the contract in the form of a fraction;
• L - capitalization period in days;
• D is the number of days in a year.

Consider an example, the calculation of interest on a deposit with a monthly capitalization, setting the following deposit parameters:

• contribution amount - 25,000 rubles;
• rate - 8%;
• term 181 days (6 months);
• the frequency of capitalization is 30 days;
• the number of days in a year is 365.

We calculate:

P = 0.08 × 30/365 = 0.00657.
S = 25000 × (1 + 0.00657) 6-25000 = 1001.83 rubles.

Thus, the total profit on the deposit with the given parameters for the entire term of the agreement will be 1001.83 rubles.

Please note that when capitalizing the interest on the deposit, the effective rate changes, that is, it is by several percent higher than the one specified in the agreement.

What is the effective rate

As a rule, the bank indicates the effective interest rate in the agreement for servicing the deposit account. In simple words, this is the rate that will be multiplied by the body of the deposit for the entire period of the contract. For example, if the contract specifies an interest rate excluding capitalization of 8%, then taking into account capitalization it will be slightly higher, it is the last value that is the effective rate. The formula for calculating the effective rate will look like this:

F = 100 × ((1 + p × d / 365/100) N-1), where:

• F is the effective rate;
• p is the rate under the agreement;
• d - number of days in one capitalization period;
• n is the number of capitalization periods per year.

Here is an example of calculating the effective rate for a deposit with the parameters indicated above:

F = 100 × ((1 + 8 × 30365/100) 6-1) = 8.18%.

Thus, the effective rate is 0.18 points higher; deposits with monthly interest can be calculated using this formula. If capitalization is carried out with a different frequency, then it is enough to replace the initial data and make a calculation.

How to calculate the rate taking into account capitalization using Excel

Surely each of us at least once in his life used a program such as Excel, you can find it in the Microsoft Office folder in any version of Windows. In order to make the calculation, you need to open the program, put the mouse cursor on any field in the table and press the fx button. After a list opens in front of you, you need to select the "Future value" function, then a table will open in front of you, which you need to fill out. What should be indicated:

• % is the contractual value as a decimal fraction;
• Nper is the number of capitalization periods in one year;
• The Pmt field remains free;
• Ps - the body of the deposit;
• Type - the field remains free.

Please note that calculating profits using programs and formulas gives only a preliminary result. The final value can only be found in the bank.

By the way, on the website of each bank there is an online calculator that will greatly facilitate your calculation. In order to calculate the potential profit, you just need to enter the parameters of the proposed deposit and the calculator will automatically give you a result, which, in principle, is preliminary.

Benefit of deposits with capitalization

The advantages of interest capitalization are obvious, because due to the addition of the accrued profit to the body of the deposit, at least slightly, it increases the depositor's profit. Although many believe that the client receives the main advantage only with long-term cooperation with the bank and a high deposit amount.

And, oddly enough, capitalization also has a drawback. For example, if you want to receive monthly profit from your savings, then in this case it is impossible to do this, because your money remains in the bank until the expiration of the deposit agreement.

Bank deposits pitfalls

Each depositor should carefully read the agreement with the bank, because there are several conditions and nuances that can reduce the potential profit of a deposit client. For example, a bank may transfer profit from a deposit to a separate account or bank card and at the same time charge additional fees for maintaining and maintaining the account. And also, for example, for SMS notifications or other additional services, which, accordingly, are paid by the client.

Another nuance is that sometimes financial institutions already indicate the effective rate on the deposit, that is, taking into account the capitalization of interest, but not all potential clients take into account that this is already final and meaning. Therefore, pay special attention to the terms of the contract.

Sometimes banks in the service agreement indicate that under certain conditions, the depositor's profit is multiplied by a reduction factor... For example, if the amount of funds deposited in the account exceeds the maximum possible value. Accordingly, at the end of the contract, the profit turns out to be less than what should have been when calculating the contribution.

Please note that often the renewal of the contract for the next period occurs automatically, that is, the client does not need to go to the bank and renew the contract for the next period, only the nuance is that it will be served at the tariffs in effect on the day of renewal. For example, if during the term of the agreement the bank changed the interest rate, then it is this rate that will be valid for the new term.

To summarize, the interest capitalization formula will help depositors calculate the potential return on their own savings. The only thing that needs to be taken into account is that it is impossible to get the final value, only a preliminary one. In addition, the final profit may depend on several nuances and conditions of the contract, therefore, before finally deciding on the choice of a product, be sure to consult with a bank employee.