Maturity Value Calculator

What is Maturity Value?

Maturity value is the total amount payable to an investor at the end of a security's or investment's term. It consists of the original principal investment plus all accumulated interest over the investment period.

Maturity Value Formulas

Depending on whether your financial deposit earns simple or compound interest, maturity value is calculated using one of two primary formulas:

1. Simple Interest Formula

$$\text{Maturity Value} = P \times (1 + r \times t)$$

2. Compound Interest Formula

$$\text{Maturity Value} = P \times \left(1 + \frac{r}{n}\right)^{n \times t}$$

Where:

$P$ = Initial Principal investment amount
$r$ = Annual interest rate (as a decimal)
$t$ = Time duration in years
$n$ = Number of compounding periods per year

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Frequently Asked Questions

How does compounding frequency affect maturity value?

More frequent compounding (e.g. monthly or daily vs annually) increases maturity value because interest is calculated and added to the principal balance more frequently.

What is the difference between principal and maturity value?

Principal is the initial capital deposited at the start. Maturity value is the final total value returned at the end of the term after including earned interest.

Can maturity value be guaranteed?

For fixed deposits, certificates of deposit (CDs), and government bonds, maturity value is generally fixed and guaranteed upon contract agreement.

Are taxes deducted from maturity value?

Interest earned is typically subject to income tax depending on tax jurisdiction and account type. The maturity value shown here represents gross return before applicable taxes.

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