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Maturity Value Calculator

Enter your principal, annual interest rate, term, and compounding frequency to find the maturity value of a fixed deposit, certificate of deposit, savings bond, or promissory note. Choose between simple and compound interest, and switch between annual, semiannual, quarterly, monthly, or daily compounding. The result updates instantly, with a full worked-step panel and a year-by-year growth chart.

Your details

The initial deposit, face value, or loan amount.
USD
The nominal annual interest rate as a percentage (e.g. 5 for 5%).
%
Investment duration. Decimals are fine (e.g. 1.5 for 18 months).
Whether the term above is in years or months.
Simple interest accrues only on the principal. Compound interest accrues on the growing balance.
How often interest is added to the balance. More frequent compounding gives a higher effective yield.
Maturity Value
12,833.59

Total amount received at the end of the term (principal + interest).

Total Interest Earned2,833.59
Principal10,000
Effective Annual Rate0.051%
Total Compounding Periods60
Principal10,000
Interest Earned2,833.59
06k13k035
Year
  • Balance
  • Principal

Maturity value: $12833.59

  • Your $10,000 principal grows by $2833.59 over the term, a 28.3% total return.
  • The effective annual rate (APY) with monthly compounding is 5.116%, which is what you actually earn each year after compounding is applied.
  • Compared to simple interest, compounding adds an extra $333.59 to your final balance.
  • This projection assumes the stated rate is held for the full term and does not account for taxes or fees.

Next stepTo compare different products, adjust the compounding frequency or switch between simple and compound interest to see how much each choice is worth over your term.

What is maturity value?

Maturity value is the total amount returned to an investor or depositor at the end of a fixed term. It equals the original principal plus all the interest accumulated during the holding period. You encounter it whenever you open a certificate of deposit, a fixed deposit account, a savings bond, or any other instrument that pays a stated rate over a defined term. The maturity value is what the bank, issuer, or counterparty agrees to pay you on a specific date in the future.

Simple interest vs compound interest

With simple interest, interest is calculated only on the original principal for every period. The formula is MV = P x (1 + r x t), where P is the principal, r is the annual rate as a decimal, and t is the term in years. With compound interest, the interest earned in each period is added to the balance, and future interest is calculated on the new, larger amount. The formula is MV = P x (1 + r/n)^(n x t), where n is the number of compounding periods per year. For a given rate and term, compound interest always produces a higher maturity value than simple interest.

Compounding frequency and APY

The more often interest is compounded, the higher the effective annual yield (APY). A 5% nominal rate compounded monthly produces an APY of about 5.116%, while the same rate compounded annually yields exactly 5.000%. The difference grows with both the rate and the term. Comparing accounts using their APY rather than their stated nominal rate is the fairest apples-to-apples measure. The APY formula is: APY = (1 + r/n)^n - 1.

Common uses of this calculator

This tool is designed for fixed-term instruments where the rate, term, and principal are all known in advance. Common examples include fixed deposits and recurring deposits at banks, US Treasury bills, savings bonds and premium bonds, short-term commercial notes, and held-to-maturity corporate bonds. It is not intended for variable-rate products, floating-rate notes, or instruments with irregular cash flows such as mortgage-backed securities. For equity-type investments, a compound annual growth rate or future value of a series calculator is more appropriate.

Compounding frequency and effective annual rate (APY)

FrequencyPeriods/yearEffective Rate (5% nominal)
Annually15.000%
Semiannually25.063%
Quarterly45.095%
Monthly125.116%
Daily3655.127%

How a 5% nominal annual rate translates into an effective annual rate at different compounding frequencies.

Frequently asked questions

What is the maturity value formula?

For compound interest: MV = P x (1 + r/n)^(n x t), where P is the principal, r is the annual rate as a decimal (e.g. 0.05 for 5%), n is the number of compounding periods per year, and t is the term in years. For simple interest: MV = P x (1 + r x t). Both formulas give the total amount you receive at the end of the term, including principal.

What is the difference between maturity value and face value?

Face value (also called par value or principal) is the original amount deposited or the stated denomination of a bond. Maturity value is face value plus all accumulated interest. For a zero-coupon bond or a non-interest-paying note, the two can differ significantly. For a bank fixed deposit, the maturity value is what you receive when the FD matures.

How does compounding frequency affect the maturity value?

More frequent compounding increases the maturity value because interest is calculated on a growing balance more often. Daily compounding produces the highest maturity value for a given nominal rate, while annual compounding produces the lowest. The difference is captured by the effective annual rate (APY): a 5% nominal rate compounded monthly has an APY of about 5.116%, not exactly 5%.

Does this calculator account for taxes or inflation?

No. The result shown is the gross maturity value before any tax deducted at source, income tax, capital gains tax, or inflation adjustment. Interest income is usually taxable in the year it is credited or at maturity, depending on the instrument and your jurisdiction. Always consult a tax professional for the after-tax return.

Can I use this for a fixed deposit in months?

Yes. Select 'Months' from the term-unit dropdown and enter the number of months (e.g. 18 for an 18-month FD). The calculator converts it to years internally and applies the correct compounding logic. Fractional years such as 1.5 also work if you prefer to enter the term as years.

What is the effective annual rate (APY)?

The effective annual rate, also called the annual percentage yield (APY), is the actual return per year after compounding is applied. It equals (1 + r/n)^n - 1, where r is the nominal rate and n is the number of compounding periods per year. For simple interest, the APY equals the nominal rate because there is no compounding. The APY is the most transparent way to compare products with different compounding schedules.

Sources

Written by Sarah Klein, CFP Certified Financial Planner · Chicago, USA

Fifteen years translating mortgage tables and amortization schedules into decisions that actually help real borrowers.

How we build & check our calculators

This tool provides general information and education, not professional advice. For decisions about your health or finances, consult a qualified professional.

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