Term Deposit Calculator Australia — FY 2025-26
Calculate maturity values, compare TD vs savings vs offset accounts, and plan a ladder strategy with after-tax returns.
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How to Use This Calculator
Tab "TD Maturity"
Enter your deposit amount, interest rate, and term in months. The calculator shows gross interest, tax on interest at your marginal rate, after-tax interest, total maturity value, and effective after-tax rate. Under "More options," choose compounding frequency (at maturity, monthly, or annually) and your marginal tax rate.
Tab "TD vs Savings vs Offset"
Compare three options for your cash: a term deposit, a high-interest savings account, and a mortgage offset account. Enter the rates for each and your marginal tax rate. The offset return is tax-free (it reduces mortgage interest rather than earning taxable income), which often makes it the best option for homeowners.
Tab "Ladder Strategy"
Split your deposit across 2–5 term deposits with staggered maturity dates. Enter rates for each term (3m, 6m, 9m, 12m, 15m). See the blended rate, average maturity, total interest earned, and how it compares to putting everything in a single TD.
The Formulas
Interest = Principal × Rate × (Months / 12)
Monthly compounding:
FV = Principal × (1 + Rate / 12)^Months
Interest = FV - Principal
Annual compounding:
FV = Principal × (1 + Rate)^(Months / 12)
Interest = FV - Principal
After-tax interest:
After-tax = Gross interest × (1 - Marginal rate)
Effective after-tax rate:
= (After-tax interest / Principal) / (Months / 12) × 100
FY 2025-26 tax brackets (Stage 3):
$0 - $18,200: 0%
$18,201 - $45,000: 16%
$45,001 - $135,000: 30%
$135,001 - $190,000: 37%
$190,001+: 45%
Offset account equivalent:
Offset return = Amount × Mortgage rate (tax-free)
Equivalent pre-tax return = Mortgage rate / (1 - Marginal rate)
All interest from term deposits and savings accounts is assessable income. Offset account savings are not income — they reduce a deductible or non-deductible expense, making them tax-free.
Example
Sarah — Marketing Manager, $50,000 TD at 4.75% for 12 months
30% marginal tax rate. Interest paid at maturity (simple interest). Also has a mortgage at 6.2%.
Sarah's $50,000 in an offset account would save $3,100 in mortgage interest tax-free — almost double the $1,663 after-tax return from the TD. The offset is clearly better while she has a mortgage.
Current Term Deposit Rates — March 2026
| Term | Indicative Top Rate | After Tax (30%) |
|---|---|---|
| 3 months | ~4.0% | ~2.8% |
| 6 months | ~4.4% | ~3.1% |
| 9 months | ~4.6% | ~3.2% |
| 12 months | ~4.75% | ~3.3% |
| 24 months | ~4.3% | ~3.0% |
| Government Guarantee | $250,000 per ADI | |
| TFN withholding (if not provided) | 47% | |