Deposit calculator (deposit calculator) online - how to calculate interest on a deposit with capitalization

Many people decide to save money for large purchases in the future, using bank deposits.

At the same time, determining the initial amount of the contribution to receive a certain income can be difficult. A deposit calculator or in other words may come to the rescue interest capitalization deposit calculator, which online can make the necessary calculations for interest, profitability and so on.

How does a deposit calculator work and why do I need a deposit calculator online

Online deposit calculator - how to calculate interest on a deposit with capitalization (reinvestment)

It is important to take into account in the calculation process how interest is calculated. Traditionally, banks offer two options:

1. reinvestment(interest capitalization) implies an increase in the deposit amount due to accrued interest, in the future income is accrued both on the deposit amount and on interest;
2. withdrawal- in this case, interest can be withdrawn after each charge.

For more information about capitalization and prolongation of the contribution, see the article here.

In addition to the interest calculation scheme, calculations require information on initial deposit amount, rate, term. We wrote about profitable deposits in banks in a separate article.

After entering this data, the calculator provides information on the final amount on deposit, as well as the amount of income.

Watch the video: Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra (May 2024).