How to use it
Enter what you start with, what you add each month, the yearly interest rate, and how many years. Choose how often the bank adds interest. Most savings accounts and time deposits add it monthly or quarterly.
The formula
With no monthly deposits:
A = P × (1 + r ÷ k)^(k × t)
- P is the starting amount
- r is the yearly rate as a decimal (6% = 0.06)
- k is how many times a year interest is added
- t is the number of years
Example: ₱10,000 at 6% compounded monthly for 10 years grows to about ₱18,194. Add ₱1,000 every month and the balance reaches about ₱182,000. You put in ₱130,000 of it.
Common questions
What is the rule of 72?
Divide 72 by the yearly rate to guess how many years money takes to double. At 6%, that is about 12 years. At 4%, about 18 years.
Does this include tax?
No. In the Philippines, interest on bank deposits is taxed at 20% at source, so the bank pays you 80% of the interest. For a rough after-tax figure, enter 80% of the rate. Pag-IBIG MP2 dividends are tax-free.
Why does compounding more often earn more?
Interest starts earning its own interest sooner. The difference between monthly and daily is small, but the difference between yearly and monthly adds up over long periods.
Last checked: 2026-09-25