Term interest capitalization is used when making a deposit and means that interest will be added to its body with the frequency specified in the conditions and in the future the interest rate will be charged not only on the client's funds themselves, but also on accrued income. The frequency of adding interest to a deposit may differ from bank to bank, but the most commonly used are daily, monthly, quarterly, annually.

An alternative is the condition when the accrued interest is transferred to the client's account or card, and he can use the money by withdrawing it from an ATM or receiving it at the bank's cash desk. Under the condition of capitalization, the income and the total value of the deposit become larger. Moreover, the shorter the frequency of interest accrual or the longer the term of the deposit, the greater the difference in income between deposits with and without capitalization.

Income on a deposit with interest capitalization in the general case can be represented by the following formula:

D \u003d B x (1 + P) \u003d T, where

D - income on the deposit;

B - the amount of the deposit;

P - interest rate for one period for which interest is charged;

T - the number of periods for which funds are placed.

As for the formulas for different accrual periods, we will consider them below.

Deposits with daily capitalization

Such conditions are usually used in deposits with short terms (from several days to a couple of months) and in this case the accrual formula will look like this:

D \u003d B x (1 + P / 365) ^ T, where

D - income on the deposit;

B - the amount of the deposit;

T is the term of the deposit in days.

For example, let's take two identical deposits in the amount of 100,000 rubles and an interest rate of 10% per annum, the term of placement of funds is 5 years. On a deposit without capitalization, we will receive an income equal to 50,000 rubles, and with capitalization - 61,051 rubles. As you can see, the difference was more than 11,000 rubles. In the case of quarterly interest, this difference will be even greater. Calculations for the example are presented in the table below:

As we can see from the example, there is a small, but still, benefit from using capitalization.

Monthly capitalization

In the case of monthly capitalization, the calculation formula will be as follows:

D \u003d B x (1 + P / 12) ^ T, where

D - income on the deposit;

B - the amount of the deposit;

P - annual interest rate on the deposit;

T is the term of the deposit in months.

Let's apply this formula to the previous example. You can see the calculation in the table below:

As you can see, in this case, the difference was already quite a tangible amount.

Quarterly capitalization

The formula for calculating income on a deposit with a quarterly capitalization will look like this:

D \u003d B x (1 + P / 4) ^ T, where

D - income on the deposit;
B - the amount of the deposit;

P - annual interest rate on the deposit;

T is the term of the deposit in quarters.

As we can see, the difference between a deposit with and without capitalization has already amounted to more than one thousand rubles.

Annual capitalization

For deposits with annual capitalization, the calculation formula will look the most simple:

D \u003d B x (1 + P) \u003d T, where

D - income on the deposit;

B - the amount of the deposit;

P - annual interest rate on the deposit;

T is the term of the deposit in years.

For example, let's take the same conditions for a deposit. Calculations for the example are presented in the table below:

At the same time, for five years the difference between the two deposits amounted to more than 11,000 rubles.

In addition to the periods of capitalization accruals discussed above, banks can offer others, for example, once every six months, once every 10, 20, 100, 200, 400 days. Here, the conditions are limited only by the imagination of bank employees responsible for deposit programs.

Pros and cons of capitalization

But with such a plus as increased income, deposits with capitalization have a certain minus. When transferring interest to a card, a bank client can use the money received at any time, while, subject to capitalization, all income remains in the bank until the last day and can only be taken at the end of the deposit agreement.

Capitalization calculation in Excel

On our website you can download a form for calculating a deposit with capitalization in Excel. By substituting your data there, you can see your income on the deposit. In addition, the form allows you to make a calculation, taking into account partial withdrawals and replenishment of the deposit.

The capitalization condition is quite serious when choosing a deposit, it determines what income will be received in the end, so it must be taken into account. To compare different investments, you can use our selection form, and to calculate the income on them - calculator. Also on the pages of our site you can view and select deposits with daily, monthly, quarterly and annual capitalization.

22.06.2017 0

Today, banks offer many services to the population, the most popular of which are lending and depositing. The policy regarding loans and deposits is largely controlled by the Central Bank of the Russian Federation, as well as Russian legislative acts. However, banks have the right to provide loans and place deposits on certain conditions, if this does not contradict the law.
According to statistics, every 10th Russian is a client of this or that bank. That is why the question of how the annual interest on a loan or bank deposit is calculated is so important. In most cases, interest refers to the size of the bet. The total amount of overpayment on the loan, as well as the amount of the monthly payment, depends on the rate.

Annual percentage of deposits: calculation according to the formula

First of all, consider bank deposits. The conditions are specified in the agreement at the time of opening a deposit account. Interest is charged on the deposited amount. This is a monetary reward that the bank pays to the depositor for the use of his money.

The Civil Code of the Russian Federation provides for the possibility of citizens to withdraw a deposit at any time, along with accrued interest.

All the nuances, conditions and requirements for the deposit are reflected in the agreement between the bank and the depositor. The calculation of annual interest is carried out in two ways:

Annual percentage of the loan: calculation by the formula

Today, the demand for loans is huge, but the popularity of a loan product depends on the annual interest rate. In turn, the amount of the monthly payment depends on the interest rate.

Considering the issue of calculating interest on a loan, it is necessary to familiarize yourself with the basic definitions and features of lending in Russian banking institutions.

The annual interest rate is the amount of money that the borrower agrees to pay at the end of the year. However, interest is usually calculated on a monthly or daily basis for short-term loans.

No matter how attractive the interest rate on a loan looks, it should be understood that loans are never issued free of charge. It does not matter what type of loan is taken: a mortgage, a consumer loan or a car loan, the bank will still be paid an amount more than they took. To calculate the amount of monthly payments, it is necessary to divide the annual rate by 12. In some cases, the lender sets a daily interest rate.

Example: a loan is taken at 20% per annum. How much interest from the body of the loan is required to pay daily? We believe: 20% : 365 = 0,054% .

Before signing a loan agreement, it is recommended to carefully analyze your financial situation, as well as make a forecast for the future. Today, the average rate in Russian banks is about 14%, so the overpayment on the loan and monthly payments can be quite large. If the borrower is unable to repay the debt, this will lead to the imposition of penalties, lawsuits and loss of property.

It is also worth knowing that interest rates may vary depending on their condition.:

• constant - the rate does not change and is set for the entire loan repayment period;
• floating depends on many parameters, for example, on the exchange rate, inflation, refinancing rate, etc.;
• multilevel - the main criterion for the rate is the amount of the remaining debt.

Having become familiar with the basic concepts, you can proceed to the calculation of the interest rate on a loan. For this you need:

1. Find out the balance at the time of settlement and the amount of debt. For example, the balance is 3000 rubles.
2. Find out the cost of all elements of the loan by taking an extract from the loan account: 30 rubles.
   Using the formula, divide 30 by 3000, you get 0.01.
3. We multiply the resulting value by 100. The result is a rate that regulates monthly payments: 0.01 x 100 = 1%.

To calculate the annual rate, you need to multiply 1% by 12 months: 1 x 12 = 12% per annum.

Mortgage loans are calculated much more complicated, because. include many variables. For a correct calculation, the loan amount and interest rate will not be enough. It is better to use a calculator that will help you calculate the approximate rate and amount of monthly mortgage payments.

Calculation of annual interest on a loan. Online calculator (balance by month and overpayment amount)

For a detailed determination of the annual interest on the loan, the distribution of the balance of the loan body by month and year, as well as displaying information in the form of a graph or table, you can use the online calculator for calculating

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 put 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 a 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 calculation.

What is capitalization

First, let's look at what interest capitalization is in simple words. In fact, this is an increase in the amount of the deposit due to the addition of interest accrued over a certain period to it. Let's also consider the situation as an example: you deposited savings in the amount of 30,000 rubles into a deposit account in a bank. A month later, the bank accrued interest to you, 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 accrued interest to you, which were 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 contract for the same period, but the nuance is that interest rates may vary, since they are valid only for the period for which you entered into the contract, the prolongation is carried out at the current rates of the bank.

In different banks, the terms of deposits, which provide for the capitalization of interest, can vary significantly. The yield of 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 indicates a simple interest rate and a capitalization-adjusted rate. Further, we will definitely consider all examples of how interest is calculated on a deposit, formulas and examples.

How interest is calculated

In fact, the calculation of income on the deposit will largely depend on the terms of the contract. 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, the profitability of the deposit will depend on this scheme.

The most common practice is to calculate interest daily. But this does not yet 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 offer, carefully read the agreement or consult with a bank employee so that he explains exactly how and when the bank will charge you interest and in what amount.

You should be especially careful with offers where the interest rate is floating. This suggests that at the beginning, or, conversely, at the end of the period, the percentage will be greater. 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%.

Formula for calculating simple interest

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

S=(C×P×D)/G where:

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

Here is an example with the following deposit parameters:

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

S \u003d (25000 × 0.08 × 181) / 365 \u003d 991.78 rubles.

Therefore, according to this example, the depositor at the end of the contract can receive 25,991.78 rubles. But this is on condition that the bank accrues interest only at the end of the contract. In practice, the calculation and transfer of profit occurs with a certain contract frequency. For example, once a month per day or quarter. In this case, it will not be difficult to calculate 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=(25000×0.08×30)/365=164.38 rubles.
• Quarterly profit S \u003d (25000 × 0.08 × 92) / 365 \u003d 504.11 rubles.

This was an example of a calculation on 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 receive it. There may be several options, for example, to a separate account or to a bank card, as well as the possibility of making a profit before the expiration of the contract. For example, despite the fact that the bank transfers interest monthly or even daily, it is possible to receive it only at the end of the contract along with the body of the deposit.

Interest calculation 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 – deposit body;
• S is the amount of profit;
• P - percentage;
• k is the number of capitalization periods during the term of the contract.

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

P=R×L/D, where:

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

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

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

We expect:

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 specified parameters for the entire term of the contract will be 1001.83 rubles.

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

What is an effective rate

As a rule, the bank in the contract for servicing the deposit account already indicates the effective interest rate. 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 agreement specifies an interest rate excluding capitalization of 8%, then, taking into account capitalization, it will be slightly higher, and it is the latter 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 contract rate;
• d is the 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 higher by 0.18 points, 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 through Excel

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

• % is the contractual value in the form of a decimal fraction;
• Nper is the number of periods of capitalization in one year;
• The PMT field remains free;
• PS – deposit body;
• Type - the field remains free.

Please note that profit calculation 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 profit of the depositor. 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, but capitalization has a drawback. For example, if you want to receive a 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.

Pitfalls of bank deposits

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 the profit from a deposit to a separate account or bank card and at the same time charge an additional fee for maintaining and servicing 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 significant. Therefore, pay special attention to the terms of the contract.

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

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

To summarize, the interest capitalization formula will help savers calculate the potential return on their own savings. The only thing to consider 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 terms of the contract, therefore, before finally deciding on the choice of a product, be sure to consult with a bank employee.

Any financial institution is a money merchant. She buys them from some individuals and sells them to others for a higher commission.

The main goal pursued by the depositor by placing his funds in a credit institution is to make a profit. However, the interest rates shown in the announcements give only a vague idea of ​​how much income you can expect each month. Today they offer their customers

This method is very convenient, because to get an answer to an exciting question, it is enough to enter the following data into the algorithm built into the site:

• date of deposit placement;

• the term for which the funds are placed (with an accuracy of one day).

The calculator will accurately determine how much money you have earned during the specified time, and will also provide data on when you can withdraw funds along with interest.

Calculation of interest on a deposit with a calculator allows you to compare the amount of expected income, depending on whether the funds will be accumulated in the account or transferred to a separate account.

How to calculate the interest on the deposit yourself?

Many customers are not satisfied with the data that the calculator shows them or the bank employees voice. To do this, you may need to know the formula for calculating interest on a deposit.

Why calculate interest on a deposit?

• to know for sure how much income you can receive;
• for a visual comparison of offers from different credit institutions;
• to protect yourself from banking errors, as a result of which income will be incorrectly accrued.

Let's look at an example. The deposit amount is 500,000 rubles. with a rate of 5.7% for a period of 1 month. To calculate income, you need to multiply the amount in the account by the percentage per annum and the number of days, after which it is divided by 365 (the number of days in a year). We get:

(500 000*0,057*30)/365

Thus, after a month, the due amount will increase by 2342 rubles. If the bank pays interest in cash, the amount may be less due to additional fees. To find out the income from a longer deposit, it is enough to multiply the amount received by the number of months.

How to calculate the annual interest on a deposit with capitalization?

Knowing the above formula, it will not be difficult to understand how much income it will bring. The difference lies in the fact that interest is accumulated over the entire term of the deposit and is paid at the end of it all at once.

The calculation of income for the first month will be carried out according to the same formula as for the standard deposit. For example, let's use the initial data from the first case. In reality, the rate of deposits with capitalization is an order of magnitude higher.

So, the income on the deposit for the first month will be the same 2342 rubles.

However, in the second month the body of the deposit increases and is already 502,342 rubles. and interest will accrue on this amount:

(502342*0,057*31)/365 = 2431

By the beginning of the third month, the body of the loan will already be 504,773 rubles. The capitalized contribution brings the greatest benefit with a significant amount of the contribution. Banks are attentive to this and offer interest rates taking into account the benefits for the client.

Formula for calculating interest on a deposit with replenishment

More effort will be required to calculate the profit in the case of . For example, a client deposited 100,000 rubles. at 9% per annum, and a month later replenished the account with another 20,000. The total deposit period is 3 months.

For the first month, his income will be:

100,000 * 0.09 * 30/365 \u003d 740 rubles.

In the second month, the deposit amount will be 100,000 + 20,000 = 120,000, and the income from it will be 120,000 * 0.09 * 60/365 = 1,775 rubles. Thus, in 3 months the client will earn 740 + 1775 = 2515 rubles.

If the deposit funds can be spent, the formula does not change, but is divided into periods before and after depositing or spending funds.

There is no urgent need to know and use formulas for calculating simple and compound interest, since banks offer an automated algorithm, however, the ability to check the system at any time in case of doubt or simply distrust of a financial institution will help defend your rights and not lose funds.

Basic data about the mobile application application

Program status: Free

Size:4MB

System: Android 4.1, 4.2, 4.3, 4.4, 5,6.0,7.0

Application page: https://play.google.com/store/apps/details?id=com.rustamg.depositcalculator.free

Designed for countries: Russia | Ukraine | Belarus | Kazakhstan

Bank deposit calculator for Android

Free deposit calculator for Windows 10

Calculation of the deposit with interest capitalization.

Capitalization on the deposit - the addition of interest received to the amount of the deposit, followed by the accrual of income for the increased amount.
Setting the calculation parameters with interest capitalization will allow you to calculate the deposit when the accrued interest amount is added to the deposit amount and accrual in the new period occurs with a new amount of savings. Such investments are more profitable. Calculations of deposits with capitalization coincide with the calculations of deposits from such banks as Tinkoff and Sberbank, VTB.

Calculation of deposits allowing deposits and withdrawals

You can set the parameters for deposits and withdrawals, as well as the amount of the minimum balance on the deposit. The calculation will be made taking into account deposits and withdrawals and you will receive the resulting deposit amount.
A deposit with replenishment allows you to accumulate funds, for example, for a down payment on a mortgage. Saving money for a mortgage through a deposit is a fairly common way to buy an apartment. Many Russians resort to it.
The deposit calculator helps you understand how much money you will have at the end of the accumulation and how much you need to replenish in order to have enough for the initial deposit. Naturally, the deposit should be opened as much as possible with a maximum percentage and capitalization. Such investments are the most profitable and safe. Other ways to increase your money is to play on the stock exchange or invest in yourself. But these costs do not guarantee a 100% payback. The deposit is distinguished by stability, you always know that your money will return to you thanks to the deposit insurance system from the state. But this applies to deposits of less than 1400 thousand rubles.

Deposits and taxes

As previously stated, deposits above a certain rate are taxed. More precisely, income on the deposit or income in the amount is taxed = income at the rate in the contract - income at the rate of the Central Bank +5.
35 or 30 percent are taken from this income, depending on whether you are a resident or not.
Taxes must be accounted for by the bank. Although sometimes the bank does not write off taxes, and then sends a letter that you need to go to the tax office. Although the bank should do it. In this case, it is recommended to go to the personal account of the taxpayer and see if you need to pay this tax. If you don't get it, then you probably won't have to pay. No need to waste your time. When calculating, the tax is rounded to an integer, i.e. everything less than 50 kopecks is rounded to zero, which is more than one. This should also be taken into account in the calculations.

Deposit and investment terms

Deposits can have investment terms from a week to 5 years. Although it may be higher. Although I had a deposit for 5 years.
Investing for the long term is an additional risk. For 5 years, money can depreciate. For a long time, you can take a chance and make a foreign currency deposit or pick up and open a metal account. Gold rises in price quite strongly and falls weakly.
Another option is to open a deposit in rubles and take out a mortgage. You pay the bank a fixed amount and you will have an apartment. When you still have money on deposit, you always know that even if the money depreciates, you will pay the bank a fixed amount, which can be taken from the deposit. It's simple - money will depreciate, your debt will depreciate. But this is if you have a loan in rubles. Everything is more complicated in the currency. When the ruble depreciates, the currency is more expensive and mortgage payments will increase. Taking a mortgage in foreign currency is an unjustified risk.