Set your assumptions
Change a value to explore a scenario.
Shared links include your inputs. Use example values if you do not want to disclose your numbers.
Your scenario
Read the result alongside the assumptions.
Ending account balance
—- Net earnings after modeled tax & fees
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- Total deposited, including initial
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- Gross interest / dividends
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- Equivalent APY before tax & fees
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- Modeled tax deducted
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- Fees deducted
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- Cash earnings paid out
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Annual breakdown
Cumulative values at each year end. The balance excludes cash payouts.
| Period | Deposited | Gross earned | Tax + fees | Paid out | Balance |
|---|
APY, dividend rate and compounding
A nominal interest or dividend rate states an annual rate before compounding. APY expresses the effect of compounding over a year. For a fixed nominal rate r compounded n times per year, this calculator uses APY = (1 + r/n)n − 1. If you enter APY, it is used directly; compounding frequency is disabled so it is not counted twice.
The monthly projection uses monthly rate = (1 + APY)1/12 − 1. Earnings accrue on the opening monthly balance. Illustrative tax is deducted from earnings, net earnings are reinvested or paid out, the monthly deposit is added, and then the fee is deducted. Fees cannot reduce the account below zero; unpaid fees or overdrafts are not modeled.
This effective-monthly approximation spreads compounding evenly over the year. It is not an exact daily-accrual or quarterly/annual-crediting schedule, especially when you add deposits or withdraw interest. APY assumes earnings remain on deposit under the applicable disclosure assumptions. When you take payouts, the displayed equivalent APY is a reference rate, not your realized cash yield.
Example: $10,000 at 4% APY
With $10,000 deposited, no further deposits, no fees, no tax and reinvestment on, 4% APY gives $10,400 after one year: $10,000 × 1.04. If the account instead quotes a 4% nominal annual rate compounded monthly, the equivalent APY is about 4.074%, producing approximately $10,407 under the same assumptions.
With a 4% APY input, the modeled monthly rate is approximately 0.3274%. The first month generates about $32.74 on a $10,000 opening balance. A $200 deposit at month end starts earning in the following month. Small account fees can consume much of the earnings on a small balance, so compare net earnings as well as the headline rate.
Account details to check
The projection assumes a fixed rate. It omits balance tiers, promotional periods, minimum-balance conditions, actual-day conventions, withdrawal limits, early-closure penalties and institution-specific dividend declarations. The tax field is a flat illustrative deduction from each month’s earnings, not a tax-return calculation. A savings rate and a stock dividend yield should not be treated as interchangeable.
- CFPB Regulation DD, Appendix A: APY calculations
- CFPB: how compound interest works
- NCUA: annual percentage yield calculations
Calculator and explanations by FinancialDepth, updated October 23, 2026. Check your account agreement for the exact rate and payout rules. See methodology.
Frequently asked questions
Is a credit-union dividend the same as a stock dividend?
No. Credit unions may call returns on share deposit accounts dividends. This calculator treats them as deposit-account earnings; it does not model stock prices or dividends per share.
Should I enter APY or the dividend rate?
Choose the type shown in your account disclosure. APY already includes compounding. A nominal annual rate needs the stated compounding frequency. Do not enter APY as a nominal rate and compound it again.
Can I turn reinvestment off?
Yes. Select the cash-payout option. Net earnings leave the account and appear under cash paid out; they do not increase the ending balance. Actual payout rules depend on the institution.
Will the result match my statement exactly?
Usually not. The model uses equal-length months and an effective monthly rate, with month-end contributions and fees. Real statements depend on actual days, posting dates, minimum balances, tiers and rate changes.
Continue planning
For investments, use the stock dividend income calculator. For a future deposit target, use the savings goal calculator. Explore all financial calculators.
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