Business Term Deposit Calculator

Enter the Quoted Deposit Terms

This business term deposit calculator estimates interest and dated cash receipts from the terms you enter. Copy the deposit amount, currency, annual rate and start and maturity dates from the client’s quote. The example uses invented terms, not an advertised bank rate.

Payment frequency controls when interest leaves the deposit under the Paid out option. Compounding controls when earned interest joins the balance used for the next interest calculation. Choosing monthly payments alone does not make the deposit compound monthly.

Select Retained only when the deposit terms permit the interest to stay. The calculator then keeps interest until maturity, with compounding only at the frequency you select. With None, interest stays outside the interest-bearing principal throughout the term.

The day-count basis divides the annual rate by 365, 360 or the actual number of days in each calendar year. Actual year changes the denominator for leap years. Every option counts actual elapsed days, includes the start date and excludes the maturity date.

These are custom modelling conventions. Match them to the quoted calculation and crediting instructions before using the result in a client forecast. The currency choice labels the amounts and export. It does not convert currencies or retrieve exchange rates.

Calculate Interest and Maturity Proceeds

Simple interest is the deposit amount multiplied by the annual rate as a decimal and the elapsed days divided by the day-count basis. For Actual year, calculate each year’s portion using its own denominator and add the portions.

The fictional example places $125,000 at 4.25% for 181 days, using a 365-day basis and monthly interest paid out. The business earns $2,634 in whole-dollar terms. It receives $2,198 before maturity and $125,437 at maturity, including the returned principal.

The schedule shows the exact receipts to cents. Monthly payments earn $2,634.41 altogether. Paying all simple interest at maturity instead produces $2,634.42 because the calculation rounds once. Both totals display as $2,634.

For retained interest with daily compounding and a fixed denominator, the unrounded maturity value is P × (1 + r ÷ b)ᵈ. P is the amount deposited, r the annual rate as a decimal, b the day-count basis and d the elapsed days. Actual year applies each day’s denominator.

Calendar compounding adds the interest accrued since the previous credit to the interest-bearing balance. Each interval earns B × r × d ÷ b, where B is that interval’s opening balance. Calendar credits round to cents. Daily compounding retains precision until a cash payment or maturity.

Compare Payout and Reinvestment

The comparison applies the same rate and compounding settings to interest paid out and interest retained. Paid-out interest stops earning within this model. If the business earns interest in the receiving account, model that account separately.

Under Paid out, the calculator sweeps all interest earned since the last payment into the receiving account on each payment date. Under Retained, those dates show accrued earnings without releasing cash. The selected compounding frequency still controls when earnings become interest-bearing.

With None selected, retaining interest does not create compound returns. The one-cent difference in the default comparison comes from cash-payment rounding. A compound comparison applies only when the actual deposit allows the selected crediting arrangement.

The separate renewal starts at the first maturity date and uses its own amount, rate and elapsed-day term. Enter the maturity proceeds as the renewal amount to roll them all over, or enter the amount the business intends to retain. Renewal interest stays in the further deposit until its maturity and uses the selected compounding and day-count settings.

The default renewal places $125,000 at an independently supplied 4% for 365 days. With simple interest and a 365-day basis, it earns $5,000 and returns $130,000. This scenario is not a renewal offer. Moneysmart explains how an automatic term-deposit rollover can start a new term at a different rate.

Read the Cash Receipt Schedule

Use the schedule’s Cash receipt column for the client’s cash budget. Interest earned records income generated during the interval. Principal returned records the original capital released at maturity. Keeping those columns separate prevents the returned deposit from being counted as interest income.

Cumulative cash adds actual receipts under the selected scenario. Retained balance includes principal and accrued interest still in the deposit, then falls to zero when the deposit matures. The CSV contains the selected schedule, both comparison schedules and the separate renewal with their input conventions.

Monthly, quarterly and annual dates stay anchored to the original start day. A shorter month uses its final day. The model does not shift payment dates for weekends or public holidays. Enter the bank’s actual settlement timing separately in the cash budget when its conditions move a receipt.

Before treating a maturity estimate as available cash, review the account’s maturity instructions, withdrawal notice and any early-withdrawal interest adjustment. Moneysmart’s compound-interest guidance explains why keeping earned interest invested changes future earnings. This tool calculates before tax and excludes fees and early-withdrawal adjustments.

The calculator creates the CSV in your browser. It connects to no bank, uploads no file and saves none of your deposit inputs in browser storage.