Enter the amount, rate and term - the calculator instantly shows the net income after personal income tax and the military levy.
The calculation is approximate and is not financial or tax advice. Check the exact terms with your chosen bank before opening a deposit.
How deposit income is calculated
The bank accrues interest on the deposit principal using the simple interest formula: income for a period = principal × rate × number of days / 365. From every accrual the state takes 23% - 18% personal income tax and 5% military levy. The bank withholds these taxes itself, so the depositor receives the net amount.
With capitalization, the net (after-tax) income of each month is added to the principal, and next month interest is accrued on a larger amount. This produces compound interest: the final amount grows faster than with monthly or end-of-term payouts, where the income simply accumulates separately and the principal stays the same.
Example: a 100,000 UAH deposit at 14% per year for 12 months, paid out at the end of the term. Gross income = 100,000 × 14% = 14,000 UAH. Tax = 14,000 × 23% = 3,220 UAH (18% income tax = 2,520 UAH, 5% military levy = 700 UAH). Net income received = 14,000 − 3,220 = 10,780 UAH.
The same deposit with monthly capitalization of net income yields more: thanks to compound interest, the final amount is 111,328.90 UAH, i.e. net income of 11,328.90 UAH - almost 550 UAH more than with a single payout at the end of the term.
Everything about calculating bank deposit income
The deposit calculator helps you see in advance how much money you will actually receive from a deposit - after all taxes. This matters because the bank’s advertised rate is always stated before tax.
Why it matters to calculate income with taxes
Banks advertise the pre-tax (gross) rate, and newcomers often calculate their expected income from that number. In reality the state takes 23% of accrued interest as personal income tax and a military levy, so the actual net income is noticeably lower. Our calculator shows both the gross and net amounts upfront so expectations match reality.
Capitalization versus a single payout
Capitalization pays off more on a longer term: the net monthly income is added to the principal and starts earning interest itself. Over a short term (a few months) the difference between capitalization and an end-of-term payout is barely noticeable, but at 12 months and longer it becomes significant.
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