A deposit is a form of investment that offers various benefits, including competitive interest rates compared to regular savings. However, many people are not familiar with the correct way to calculate deposit interest.

Let’s see how to calculate deposit interest using the following formulas.

**How to Calculate Deposit Interest**

Deposit interest can calculated using the following two formulas:

**1. Based on Total Investment After Maturity**

This formula aids in determining the total return from the deposited amount. The calculation formula is as follows:

**Total Investment = Principal Deposit + (Deposit Interest Profit – Deposit Interest Tax) **

To determine the **Deposit Interest Profit**, use the following formula:

**Deposit Interest Profit = Principal Deposit x Deposit Interest Rate x Deposit Period ^{1)}/Number of days in one year^{2)} **

Meanwhile, the **Deposit Interest Tax** that must be paid can be calculated through the following formula:

**Deposit Interest Tax = Deposit Interest Profit x % Interest Tax ^{3) }**

*Notes:*

^{1) }*Deposit period in days *

^{2) }*The number of days in a year is 365 days for non-leap years and 366 days for leap years *

^{3) }*Interest Tax is 20%*

To better understand how to calculate deposit interest using the formula above, here is an example of the calculation:

*Mr. A intends to place a time deposit of Rp10 million for a 6-month period at an interest rate of 6% per year, with a total tax of 20%. *

First, let’s calculate the profit earned from the deposit interest using the formula:

**Deposit Interest Profit = Principal Deposit x Deposit Interest Rate x Deposit Period ^{1)}/Number of days in one year^{2)} **

*= (IDR10,000,000 x 6% x 180 days) / 365*

*= IDR108,000,000/365*

*= IDR295,890*

Next, let’s calculate the total tax payable using the following formula:

**Deposit Interest Profit x Total Tax**

*= IDR295,890 x 20%*

*= IDR59,178*

After obtaining the calculation results of the deposit interest profit and the tax payable, we can calculate the total investment using the following formula:

**Total Investment = Principal Deposit + (Deposit Interest Profit – Deposit Interest Tax) **

*= IDR10,000,000 + (IDR295,890 - IDR59,178)*

*= IDR10,000,000 + IDR236,712*

*= IDR10,236,712*

Therefore, after 6 months, the total balance of the deposit will be IDR10,236,712

**2. Based on Interest Per Month**

The other option to calculate deposit interest is based on net interest per month. The formula is:

**(Deposit Interest Rate x Principal Deposit x 30 Days x 80%) / 365 Days **

The 80% in the formula represents the percentage of income after deducting the 20% tax that must be paid.

Look at the following calculation illustration for a better understanding.

*If you want to deposit IDR10,000,000 for 6 months at a 6% annual interest rate with a 20% tax deduction, the calculation would be as follows: *

*(Deposit Interest Rate x Principal Deposit x 30 Days x 80%) / 365 Day s *

*= (6% x IDR10,000,000 x 30 x 80%) / 365*

*= IDR14,400,000 / 365*

*= IDR39,452*

This means that the net monthly profit that you will earn is IDR39,452

If you’re considering opening a savings deposit as an investment for the future, you can calculate the potential return on your investment through a deposit simulation by clicking the link provided here. Additionally, BCA offers competitive interest rates on time deposits with various maturity options, including 1 month, 3 months, 6 months, or 12 months.

If you’re interested in opening a time deposit, you can do so through myBCA or KlikBCA Bisnis! To open a deposit via myBCA, please refer to the instructions by clicking the button below: