Term Deposit Calculator
A term deposit is a fixed-term savings product offered by Australian banks.
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🏦 Term Deposit Calculator – Australia
A Term Deposit Calculator helps you estimate the maturity value, interest earned, and effective annual return on a term deposit in Australia.
Term deposits are a popular savings option offered by Australian banks for people who want stable, predictable returns without market risk. This calculator helps you see how your money may grow based on the deposit amount, interest rate, term length, and interest payment method.
📘 What is a Term Deposit?
A term deposit is a savings product where you deposit a lump sum with a bank for a fixed period of time at a fixed interest rate.
Key features of term deposits in Australia:
- Fixed deposit amount
- Fixed interest rate
- Fixed term (months or years)
- Interest paid at maturity or at regular intervals
- Limited or restricted access before maturity
Because the rate and term are fixed, term deposits are commonly used for capital protection, short-to-medium-term savings, and low-risk investing.
🧮 What this Term Deposit Calculator does
This calculator estimates:
- Maturity Value – Total amount received at the end of the term
- Total Interest Earned – Interest gained over the deposit period
- Effective Annual Return – Annualised return after accounting for interest payments
Optional:
- Regular interest payments (monthly, quarterly, or annually)
- Post-tax returns
- Inflation-adjusted (real) value
The calculations follow standard compound-interest methods commonly used for Australian term deposits.
🧭 How to use the Term Deposit Calculator
- Enter the Deposit Amount
- Enter the Interest Rate (% p.a.)
- Select the Term (months or years)
- Choose the Interest Payment Method
- (Optional) Open Advanced Options for tax and inflation adjustment
- View the results instantly
The calculator updates automatically as you change inputs.
🧾 Inputs explained
Deposit Amount
The lump sum amount you invest in the term deposit.
Example: A$10,000
Interest Rate (% p.a.)
The annual interest rate offered by the bank for the term deposit.
Example: 5.00%
Term
The length of time your money remains locked in the term deposit. You can choose months or years.
Common terms in Australia include:
- 6 months
- 12 months
- 24 months
- 36 months
Interest Payment Method
How and when interest is paid.
Common options:
- Paid at maturity – Interest added and paid at the end of the term
- Paid monthly – Interest paid every month
- Paid quarterly – Interest paid every three months
- Paid annually – Interest paid once per year
Interest paid at maturity typically results in a higher final balance due to compounding.
📐 Term deposit calculation formula
For term deposits where interest is compounded, the calculator uses:
Maturity Value = P × (1 + r/n)^(n × t)
Where:
- P = Deposit Amount
- r = Annual interest rate (decimal)
- n = Interest payment / compounding frequency
- t = Term in years
📊 Understanding the results
Maturity Value
The total amount you receive when the term deposit matures.
Total Interest Earned
The interest gained over the entire term.
Interest Earned = Maturity Value − Deposit Amount
Effective Annual Return
Shows the annualised return, accounting for how often interest is paid or compounded. This helps compare term deposits with different interest payment methods more fairly.
🔁 Term deposit with interest at maturity vs regular payments
Interest paid at maturity
- Interest is reinvested
- Higher maturity value
- Suitable for growth-focused savings
Regular interest payments
- Interest paid monthly, quarterly, or annually
- Principal returned at maturity
- Suitable for income needs
This calculator supports both options.
🧾 Tax on term deposit interest (Australia)
Interest earned on term deposits is generally treated as taxable income.
Using the optional Income Tax Rate input, the calculator shows:
- Estimated tax on interest
- Post-tax maturity value
(No assumptions are made about individual tax thresholds or exemptions.)
📉 Inflation-adjusted term deposit returns
Inflation reduces the real value of money over time.
When inflation adjustment is enabled, the calculator shows:
- Inflation-adjusted maturity value
- Returns expressed in today’s Australian dollars
This is useful when comparing term deposits with other savings or investment options.
✅ Why use this Term Deposit Calculator?
- Designed specifically for Australian term deposits
- Clear and simple return calculations
- Supports multiple interest payment options
- Optional tax and inflation adjustments
- No sign-up or personal information required
⚠️ Assumptions & limitations
- Interest rate remains constant for the full term
- No early withdrawal penalties are included
- No bank-specific features or promotional rates
- Results are estimates and not financial advice
❓ Frequently Asked Questions (FAQs)
Are term deposits safe?▼
They are considered low-risk, but returns depend on the issuing bank and account terms.
Is term deposit interest taxable in Australia?▼
Yes, interest earned is generally taxable as income.
Which is better: interest at maturity or regular payments?▼
At maturity may maximise returns; regular payments can suit steady income needs.
Does inflation affect term deposit returns?▼
Yes. Inflation reduces purchasing power, especially over longer terms.
📝 Final note
This Term Deposit Calculator is designed to help you estimate returns clearly, compare options confidently, and plan your savings better before opening a term deposit. Always confirm rates, terms, and tax implications with your bank or financial adviser before investing.