Fixed Deposit Return and Interest Calculator
Calculate gross and net interest earnings and the withholding tax instantly by entering your principal, annual interest rate and term.
⚠️ This tool is for informational purposes. Reflects Turkey-specific deposit interest taxation (15% withholding tax). Bank rates and withholding rates may change; verify with your bank.
How Is Deposit Interest and Net Earnings Calculated?
Fixed deposit calculation consists of two steps: first the gross interest is computed, then the withholding tax is applied to find the net earnings. Although banks publish interest rates annually, the actual return is prorated by the number of days in the chosen term.
What Is the Difference Between Gross and Net Interest?
Gross interest is the raw earnings calculated before withholding tax and other deductions. Net interest is the actual earnings you receive after the withholding tax (income tax withholding) is deducted.
Gross Interest = Principal × Annual Rate × (Term Days / 365)
Net Interest = Gross Interest × (1 − Withholding Rate)
Example: 1,000,000 TRY × 39.50% × (46/365) = 49,780 TRY gross. 17.5% withholding gives 41,069 TRY net.
Current Withholding Tax Rates in Turkey
The withholding tax rate on fixed deposit earnings in Turkey is set by presidential decree and may change over time. The rates below are informational. You can enter the withholding rate shown on your bank statement manually in the calculator.
TRY Deposit (Standard)
15%
FX / Gold Deposit
15%
Corporate Taxpayer
0%
💡 If your bank statement shows a different rate (e.g. 17.5%), enter that rate manually in the “Withholding Tax” field of the calculator.
Interest Return Strategies by Term Length
Why Is the 32-Day Term the Most Popular? (Monthly Cycle)
The 32-day term is the closest match to a calendar month in business days and aligns with monthly liquidity needs. Renewing every month allows quick adaptation to interest rate changes. When rates are trending up, staying short is advantageous. When rates are trending down, switching to longer terms may make sense.
Monthly Liquidity
Access every 32 days
Rate Flexibility
Tracks the market
Drawback
Lower rate vs. long terms
Advantages of 92-Day, 181-Day and Longer Deposits
Banks usually offer higher interest rates on longer-term deposits. When rates are expected to fall, locking into a longer term can boost net returns. The table below shows how term length affects gross return for the same annual rate:
| Term | Annual Rate | Gross Interest (1M TRY) | Net Interest (15% tax) |
|---|---|---|---|
| 32 days | 40% | ≈ 35,068 TRY | ≈ 29,808 TRY |
| 92 days | 42% | ≈ 105,863 TRY | ≈ 89,983 TRY |
| 181 days | 44% | ≈ 218,137 TRY | ≈ 185,416 TRY |
| 365 days | 45% | ≈ 450,000 TRY | ≈ 382,500 TRY |
* Approximate values. Actual return depends on the rate offered by your bank.
Things to Watch Out For When Investing in Deposits
Welcome (Introductory) Rate Pitfalls and Term Expiration
Banks offer above-market “welcome rates” to attract new customers. These campaigns usually apply only to the first term. At maturity, the account renews automatically at the standard board rate. Missing this transition results in a significantly lower return for the next period.
⚠️ The welcome rate applies only to the first term. Check your bank's auto-renewal terms before maturity.
Growing Earnings via Compound Interest (Renewing the Term)
Adding the net return to the principal at maturity and renewing the account creates a compound interest effect. Each period earns interest on a slightly larger principal. The formula below shows the cumulative effect of renewing 1,000,000 TRY at 40% annual rate over 32-day periods:
Compound Total = Principal × (1 + Net Period Rate)ⁿ
n = number of renewals. Net Period Rate = Gross Rate × (1 − Withholding)
💡 The “Compound Interest” option in the calculator handles this automatically. For long-term planning, selecting the “Compound” interest type is recommended.