Maturity Value Calculator
From the principal, annual rate, compounding frequency and term, compute the value of a deposit or investment at maturity.
Input Data
Results
At a glance:Maturity value is the amount a deposit or investment reaches at the end of its term. Maturity value = principal × (1 + r ÷ n)^(n × t), where r is the annual rate as a decimal, n the compounding periods per year and t the years.
Formula
Period rate = annual rate% ÷ 100 ÷ compounds per year.
Maturity value = principal × (1 + period rate)^(compounds per year × years).
$$MV = P \\left(1 + \\dfrac{r}{m}\\right)^{m t}$$How to Use
- Enter the principal amount.
- Enter the annual rate and compounding frequency.
- Enter the term in years to see the maturity value.
FAQ
What is the difference between maturity value and maturity interest?
Maturity value is the total (principal plus all accumulated interest) you get back at maturity; maturity interest is only the interest portion. They relate as: maturity value = principal + interest, or interest = maturity value − principal. Using this calculator's example (principal 10,000 at 5% monthly compounding for 3 years), the maturity value is about 11,614.72 — roughly 11,615 in total — of which about 1,615 is interest. This tool gives the total you can withdraw; subtract the principal to see the pure interest.
Why does the compounding frequency affect the maturity value?
Compounding frequency is how many times a year interest is calculated and rolled into the principal. Each time interest is added, it then earns interest itself — the 'interest on interest' effect. At the same nominal annual rate, more frequent compounding (higher frequency) means more rolling and a slightly higher maturity value. For example, at 5%, annual vs monthly compounding gives the latter a marginally higher effective return. The gap is usually small, though; to compare products fairly, convert to the Annual Percentage Yield (APY) rather than judging by the nominal rate alone.
Can I withdraw a fixed deposit before maturity?
Generally yes, but usually at a cost. The higher rate on a time deposit is conditional on you keeping it for the full term. If you break it early, the bank often cuts or even cancels the interest and may charge a fee, so the actual return can be far below what this calculator shows. Before committing, assess whether the money is truly idle for the term; if you are unsure about liquidity, consider splitting into several deposits with staggered maturities (a ladder) or choosing a shorter, renewable product. Check the bank's exact terms and penalties.
How is maturity value related to APY, and how should I compare fixed deposits?
To pick the best deposit, looking only at the nominal rate or the maturity value can mislead; use the APY. Nominal rate is the advertised annual rate but does not tell you the compounding frequency. APY (Annual Percentage Yield) folds the compounding into one comparable annual return: APY = (1 + nominal ÷ n)^n − 1. E.g. nominal 5% monthly compounded gives APY ≈ 5.12%, slightly above 5%; more frequent compounding lifts APY further. Maturity value is the end amount from rolling the principal forward; APY is that same compounding effect compressed into a comparable annual rate — two views of the same thing. To compare deposits: (1) prefer APY over nominal rate, since different products compound differently; (2) if only a nominal rate is shown, convert it with the formula above; (3) compare on the same term; (4) watch the terms — some high-rate deposits have conditions (new funds, minimum amount) or only apply for the first period; (5) note the early-withdrawal penalty. When nominal rates are close, the frequency difference has limited impact on the maturity value, so don't chase a slightly higher frequency at the expense of rate, term, flexibility or bank credibility.
Is the maturity interest taxed, and does inflation affect the maturity value?
After a nice maturity value, also consider tax and inflation to know the real return. On tax: Hong Kong is friendly to personal deposit interest — under current arrangements, interest earned by an individual on a Hong Kong bank deposit is generally exempt from profits tax, so most personal time-deposit interest is not taxed separately. This differs from many overseas jurisdictions. Caveats: overseas bank deposits may be subject to local tax; company-held deposits may be treated differently; and tax rules can change, so verify before important decisions. For a typical Hong Kong individual, the maturity value is close to what you actually receive. On inflation: this calculator's maturity value is a nominal figure and does not show the change in purchasing power. If the deposit rate is below inflation, even though you get principal plus interest nominally, what that money buys has shrunk — a negative real return. For example a 2% deposit rate against 3% inflation gives a real return of about −1%. To see the real return, deflate the nominal rate using the Fisher equation: (1 + nominal) ÷ (1 + inflation) − 1. Practical tips: personal deposit interest is usually tax-free in Hong Kong; but watch inflation and choose products whose rate at least keeps pace with or beats it; use the Real Rate of Return Calculator; time deposits suit capital-preservation, emergency and short-to-medium-term funds, not as the sole long-term inflation hedge.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.