Retained interest and paid-out interest are different balances
Reinvested interest remains in the deposit and participates in future compounding. Paid-out interest leaves the deposit, so the maturity principal remains the initial amount. The calculator reports retained interest and paid-out interest separately rather than disguising a distribution as money still held at maturity.
A simple one-year comparison
For a $1,000 deposit at a 12% nominal annual rate with monthly reinvestment, the end-year balance is approximately $1,126.83. Under the generic payout model, principal stays at $1,000 and total interest paid out is $120. The difference comes from retaining and compounding earlier interest.
A generic term-deposit convention
Reinvestment uses fractional exponents for a partial period. Payout mode uses simple interest across the whole entered term, including a prorated final partial period. No particular bank’s deposit insurance, early-redemption penalty, offered rate or day-count convention is included. Read actual product terms before comparing the estimate with a quoted maturity amount.
Questions about this calculation
How can I check the inputs behind the result?
Open “Show calculation & assumptions” for the formula and timing conventions, then inspect the breakdown. Export CSV to keep the last calculated inputs and numerical results together.
Does this include taxes or changing market returns?
No tax calculation or variable market-return path is included. The task-specific assumptions above describe the scope. Calculated values are conditional on the inputs, not personalized recommendations.
Learn more
Start with the step-by-step future value formula guide.
Open the formula guide →How to calculate future value · Spreadsheet calculations · All learning guides
Use these figures to explore assumptions. Actual interest, returns, fees, taxes and purchasing power can differ.