The online savings deposit program calculator will be efficient to quickly get a quote on any deposit, including capitalization, adding funds еto the account and taxes, as well as display the interest calculation schedule. If you are planning to open a saving deposit, then the calculator will help you calculate the potential return in advance.

## Multiple number calculator for interest capitalization

In case of a regular usage of a deposit, the bank pays the accrued interest to the depositor on a monthly basis (or with another frequency specified in the terms of the agreement). This is called “simple interest”. A saving deposit with capitalization (or “compound interest”) is a term 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 such a calculator, you can compare the results of calculating two identical deposits (with and without capitalization) and see the difference.

## Effective interest rate on the savings

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.

If you calculate how much interest was accrued to the initial amount by the end of the deposit term, this amount will be the effective interest rate.

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.