Question 1

What is the difference between nominal and real return?

Accepted Answer

Nominal return is what you see on paper — the raw number. Real return strips out inflation, showing what you can actually buy with that money. If your deposit earns 10% but inflation is 12%, your real return is negative: your money buys less than when you started.

Question 2

How is the deposit end value calculated?

Accepted Answer

The calculator applies your annual deposit rate compounded once per year over the chosen period. If tax is applied annually, each year's interest is reduced by the tax rate before being added to the balance. If tax is applied at redemption, the full nominal gain is taxed when you cash out.

Question 3

How is the investment end value calculated?

Accepted Answer

The annual return is reduced by the fund fee first (e.g. 10% return minus 0.5% fee = 9.5% net). The same tax timing logic applies: annual tax reduces each year's gain, while redemption tax is applied to the total profit at the end.

Question 4

Which tax timing should I choose?

Accepted Answer

In most countries, bank deposit interest is taxed as it is paid — usually annually. Investment gains (from ETFs or stocks) are typically taxed only when you sell, which means the full amount compounds tax-free until redemption. Redemption is the default here because it typically models investments more accurately.

Question 5

Why does a higher return not always mean a better outcome?

Accepted Answer

Fees, taxes, and inflation can each eat into returns. An investment returning 12% per year with a 2% fund fee and 18% tax at redemption may end up comparable to a deposit at 10% — especially over shorter periods. The real value after inflation is the number that matters most.

Free Online Deposit vs Investment Calculator

Frequently Asked Questions

Explore more tools