See How Much More You Would Earn On Your Savings With Compound Interest

Interest Withdrawal vs Reinvestment Calculator

This calculator shows how much more an investor would make compounding interest earnings rather than withdrawing interest as it is earned. This calculator uses monthly compounding interest at the annual rate to ensure the compared numbers are apples to apples.

The calculator also allows the user to account for the impact of inflation.

Description Amount
Amount Invested:
Annual Interest Rate (APR %):
Years to Compound:
State + Federal Income Tax Rate:
Inflation Rate:
Inflation-adjusted Value of Original Sum at End of Period:
Current Monthly Interest Withdrawal:
Sum of Current Interest Withdrawals:
Total Income Tax On Regular Withdrawls:
Number of Monthly Withdrawals:
Future Value of Interest if Reinvested as Earned:
Additional Interest Earned By Compounding Earnings:
Total Income Tax On Interest if Reinvested:
Total After-Tax Savings if Reinvested:
Spending Power of Above Savings After Inflation:

Make Your Money Work Harder!

Is your bank offering competitive rates which beat inflation and taxes? If not, you may be able to earn a better rate & make your money work harder by shopping around.

The following table lists currently available rates for savings accounts, money market accounts and CDs.


According to Albert Einstein, "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it. Compound interest is the most powerful force in the universe."

If you regularly withdraw earned interest then that does not leave a chance for the money that was earned to earn more money, it is effectively foregoing compounding. If money is needed for daily living expenses or there is another investment which will provide a higher rate of return than ordinary interest than making regular withrawals can make sense, but to do so otherwise is to give up on compounding.

Withdrawing Money.