### Quickly Calculate Bi-weekly Compound Interest

#### On Lump Sum and/or Regular Deposits Into a High Yield Savings Account

## How To Use This Bi-weekly Compound Savings Calculator

### The Basics

Use this calculator to quickly figure out how much money you will have saved up during a set investment period. First, enter your initial amount you have set aside, then enter the interest rate along with how long you intend to invest for.

Next enter how much money you intend to deposit or withdrawal during each biweekly period. If this calculation is for a lump sum deposit with no recurring transactions enter "Never" in the "add money" drop down.

Once you have entered this information the calculator will inform you of how much money you will have saved up before income taxes, how much income tax you'll owe & what the remaining amount of money is worth in real terms after accounting for inflation.

Calculations update automatically when any input is changed. If you have a particular savings goal you want to reach by a specific date then please use our savings goal calculators.

If you would like to print out a schedule of your savings growth over time, please click on the "Create Growth Table" button to generate a printable schedule of your payment history, accumulated interest & balance.

## Calculation Mechanics

### How Interest is Compounded

Our calculator compounds interest each time money is added. If the account has a lump-sum initial deposit & does not have any periodic deposit, by default interest is compounded bi-weekly. Most bank savings accounts use a daily average balance to compound interest daily and then add the amount to the account's balance monthly.

Most years have 365 days, while leap years have 366 days. This means there is a bit more than 52 weeks in the average year, with there being 52 weeks and 1 day in most years while there is 52 weeks and 2 days on leap years.

As there are slightly more than 52 weeks in a year, the APR for biweekly compounding is divided by 26.089285 and compounded every other week, which is what increases the APY above the stated APR rate.

If you would like to change the compounding frequency for a one-time deposit then set the "deposit each cycle" & "withdrawal each cycle" variables to $0 and select "transaction frequency" at whatever frequency you wish to compound interest.

### When Contributions Are Made

In the above calculator when recurring account contributions are made, money is added or subtracted at the beginning of each bi-weekly period. If you would like to end money at the end of each period then you would subtract the regular contribution amount from the initial savings to calculate interest at the end of the week.

For example, if you had $500 of savings for the initial deposit and wanted to deposit $100 every other week at the end of each period you would set the initial deposit to $400. The first $100 deposit would be added to the $400 upfront to base the initial interest calculation off $500.

### How Income Taxes Are Accounted For

This calculator estimates taxes based on the rate entered with the tax payment made at the end of the investment period. This approach is how tax payments would work on savings stored inside a tax deferred retirement account.

Ordinary interest on a regular bank savings account is typically paid for on an annual basis, with banks sending account holders a 1099-INT if they earn above some baseline level of around $10. If your account is untaxed then enter zero as the marginal tax rate in the above calculator.

### How Inflation is Accounted For

After taxes are deducted from interest earnings & final savings are calculated, inflation is accounted for by multiplying the final amount by (100% - inflation rate)^{years}

### I very frequently get the question:

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