Calculate your deposit
Enter your amount, the rate your bank quotes, the term, how often profit is credited, any top-ups and the tax rate that applies to you. The calculator shows profit with simple or compound interest, profit after tax and the effective annual rate.
Fill in the empty fields to see the result.
Simple: P × r × t. Compound: interest is added to the balance each period; effective annual rate = (1 + r/n)^n − 1. Tax is withheld each time interest is credited.
This page uses no rates of its own. Rates belong only in the calculator, where you enter them yourself, or come from an official source with its date.
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How bank interest works
When you deposit money, the bank uses it to lend and invest, and pays you a share of what it earns. Pakistani banks usually call this payment profit rather than interest. Islamic banks also use the word profit, but the contract behind it is different (see Payments, tax, Islamic banking).
Every deposit return depends on these inputs:
- Principal: the amount you put in.
- Profit rate: usually quoted per year, even when profit is paid more often.
- Term: how long the money stays in.
- Payout frequency: monthly, quarterly, half-yearly, annually or at maturity.
- What happens to the profit: paid out to you or added back to the deposit.
- Tax: usually deducted at source before profit reaches you.
Bank rates broadly follow the central bank's policy rate. The latest decision listed by the State Bank of Pakistan: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). A change in the policy rate does not reprice every product at once. Fixed deposits usually keep their rate for the agreed term, while savings account rates can change whenever the bank revises them. More on this is in SBP rates and economy.
Savings accounts vs fixed deposits
| Feature | Savings account (demand deposit) | Fixed deposit / term deposit |
|---|---|---|
| Access to money | Withdraw at any time | Locked for the agreed term |
| Rate | Variable, the bank can change it | Usually fixed for the term |
| How profit is calculated | Often on daily or monthly balance | On the deposited amount |
| Profit payment | Usually credited monthly or half-yearly | As agreed: periodic or at maturity |
| Breaking early | No penalty | Penalty or reduced rate |
| Typical use | Everyday money, emergency fund | Money you will not need for a set period |
Savings account profit is often calculated on your average or minimum balance in a period. A large withdrawal just before the calculation date can lower your profit for the whole period. Some accounts pay a higher rate above a balance threshold, so check the product terms.
Fixed deposit profit is easier to predict. Banks often offer a choice of terms, and longer terms do not always pay more. Rates on each tenor reflect what the bank expects interest rates to do.
Simple vs compound interest
Simple interest pays profit only on the principal. If profit is paid out to your account each month and you spend it, your deposit earns simple interest.
Compound interest pays profit on the principal plus profit already earned. This happens when profit is added back to the deposit, or when you reinvest each payout. Over a long term, compounding makes a clear difference, and the gap grows with the rate and the term. See Compound Interest for the mechanics.
Payout frequency matters too. With the same quoted annual rate, more frequent compounding gives a slightly higher effective annual rate, meaning the return you actually get over a year once compounding is counted. Use the effective rate when comparing products with different payout schedules. APR and Effective Rate explains the difference between a nominal and an effective rate.
Switch between simple and compound in the calculator above to see the gap for your own amount.
Early withdrawal penalties
Breaking a fixed deposit before maturity usually costs you. Common approaches banks use:
- Paying a lower rate for the period the money was actually held.
- Applying the rate of a shorter tenor instead of the agreed one.
- Charging a fixed penalty or recovering profit already paid out.
The exact rule is in your deposit terms and the bank's schedule of charges. Read it before you open the deposit, not when you need the money. If you might need part of the money early, splitting it across several deposits with different maturities limits what you lose by breaking any single deposit. Keeping an emergency fund in an accessible account also helps.
Tax on profit
In Pakistan, tax on profit from bank deposits is usually withheld by the bank at the time profit is credited. The rate depends on your tax status, and in particular on whether you appear on the Active Taxpayer List. Rates are set in the tax law and can change with each budget, so confirm the current rate with your bank or the Federal Board of Revenue.
Other deductions can also apply, such as Zakat on certain savings accounts unless an exemption declaration is filed. Check the rules with your bank.
Always compare deposits on profit after tax. Enter your applicable tax rate in the calculator to see the net figure.
Real return: inflation
A deposit can grow in rupees while losing buying power. If inflation is higher than your profit rate after tax, your money buys less at maturity than when you deposited it. This real return is often the most useful single figure for savings decisions. See Inflation and Savings.
Safety and alternatives
Bank deposits in Pakistan are covered by a deposit protection scheme up to a limit. Read Deposit Insurance for how it works. Government-backed options such as National Savings schemes work differently and are covered in Savings and deposits.
Deposits are not the same as investing or trading. Stocks, funds and especially leveraged forex or CFD trading carry the risk of losing money, and leveraged trading can lose money fast. For an overview, see Saving, Investing, Loans.
Frequently asked questions
Why do banks in Pakistan say "profit" instead of "interest"?
It is common banking language in Pakistan. For conventional banks the effect is the same as interest. For Islamic banks the profit comes from a different contract structure, such as profit sharing.
Are savings account profit rates fixed?
Usually not. The bank can revise them, often after policy rate changes. Fixed deposit rates are normally locked for the agreed term.
Does monthly payout earn more than payout at maturity?
Only if the monthly profit is reinvested, so that it compounds. If you spend it, you earn simple interest. The calculator shows both cases.
What is the effective annual rate?
It is the yearly return after counting compounding. It lets you compare deposits that pay profit on different schedules.
Can I break a fixed deposit early?
Usually yes, but at a cost such as a reduced rate or a penalty. Check your bank's terms before you deposit.
Where can I find current bank profit rates?
Each bank publishes its own rates on its website and in its branches. Note the date of any rate you use, and enter it in the calculator yourself.