Term Deposit Calculator Australia

Interest earned and the balance at maturity, whether interest is paid monthly, quarterly, yearly or at the end, and what’s left after tax.

Optional. Enter it to see the interest after income tax and the Medicare levy at your marginal rate.
2.5% is the middle of the Reserve Bank's 2–3% inflation target and ASIC's default for today's dollars. Change it to try another rate.

Interest earned

–
Balance at maturity–
Each interest payment–
Effective yearly return–
Tax on the interest–
Interest after tax–

Estimate only. Counts each month as 1/12 of a year (banks usually count days, so your bank’s figure may differ by a few dollars). Tax uses 2026-27 resident rates and the Medicare levy, ignores offsets and assumes all the interest falls in one income year. This calculator is not intended to be relied on for the purposes of making a decision about a financial product. You should consider obtaining advice from a financial services licensee (a licensed financial adviser) before making any financial decisions.

Purpose, assumptions and limitations

What it's for: working out the interest on a term deposit from the amount, rate, term and how interest is paid, and roughly how much tax you'd pay on it. It doesn't recommend or compare any bank or term deposit.

Today's dollars: The balance at maturity is in future dollars. For terms of 2 years or more, the results also show it in today's dollars. The in today's dollars figure divides it by 1 plus the inflation rate for each year until then (the present value), so you can see what it would buy at today's prices. It uses 2.5% a year unless you change it: the middle of the Reserve Bank's 2–3% inflation target, and the default set by ASIC Corporations (Generic Calculators) Instrument 2026/41 (section 6), which asks calculators like this one to show it for amounts 2 or more years away.

Default assumptions and why they're reasonable:

Limitations and their effect: banks count days, so their interest can differ by a few dollars. Tax offsets, the Medicare levy surcharge and interest split across two income years aren't included, so your real tax may be a little higher or lower. Breaking a term early usually costs you interest, which isn't modelled.

Not for product decisions: This calculator is not intended to be relied on for the purposes of making a decision about a financial product. You should consider obtaining advice from a financial services licensee (a licensed financial adviser) before making any financial decisions.

Term Deposit: how it works

Checked 15 Oct 2026. Tax on interest uses the ATO's 2026-27 resident tax rates; deposit protection as described by Moneysmart.

Enter the amount, rate and term, and how often the bank pays interest. Interest paid at maturity is simple interest: amount × rate × months ÷ 12. If interest is paid monthly, quarterly or yearly, you choose whether it's paid out to your bank account (simple interest again) or added to the deposit, where it earns interest of its own (compounding).

Each month counts as one-twelfth of a year. Banks usually count days, so your bank's figure may differ by a few dollars. There are no fees. If the term isn't a whole number of payment periods, the last part-period earns interest pro rata.

Tax: interest is taxable income. Enter your other taxable income to see the extra income tax and Medicare levy at your marginal rate, using 2026-27 resident rates. Offsets are ignored, and all the interest is counted in one income year.

As Moneysmart explains, term deposits with banks, building societies and credit unions are covered by the Financial Claims Scheme up to $250,000, and breaking one early can cost you interest.

General information only, not financial, tax or credit advice. Check your situation with the ATO, your state revenue office or a licensed adviser.

Term Deposit FAQs

How much interest will I earn on a $10,000 term deposit?

$450 over 12 months at 4.5% p.a. when interest is paid at maturity, leaving $10,450. Over 6 months at the same rate it's $225. If interest is paid monthly and reinvested it's $459.40, or $457.65 if it's paid quarterly and reinvested.

Is monthly or at-maturity interest better?

Reinvested monthly interest earns slightly more: $459.40 a year on $10,000 at 4.5%, against $450 at maturity. Interest paid out to your bank account earns no interest itself, so it totals $450 ($37.50 a month), the same as at maturity. Banks often offer a slightly lower rate for monthly interest, so compare the dollar results.

How is term deposit interest taxed?

As ordinary income, at your marginal rate plus the Medicare levy. On $2,250 of interest ($50,000 at 4.5% for a year), someone earning $80,000 pays $720 (32%) and keeps $1,530. On $150,000 the tax is $877.50 (39%). With no other income it's all under the tax-free threshold and no tax is payable.

What about terms longer than a year?

On a 2-year term at 4.5% with interest added each year, $10,000 earns $920.25. The $10,920.25 you get back is worth about $10,394.05 in today's dollars at 2.5% inflation a year, which the calculator shows for terms of 2 years or more. Many banks pay interest at least once a year on terms longer than 12 months, so check how yours does it.

Is my term deposit safe?

Deposits with an Australian bank, building society or credit union are covered by the government's Financial Claims Scheme up to $250,000. If you have more than that, consider spreading it across institutions. Check the provider is on APRA's list of authorised deposit-taking institutions.

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