Compound interest calculator with Belka tax

How much will your savings grow with compound interest?

Compound interest means that interest credited to your account starts earning interest of its own. If you start with PLN 10,000, add PLN 500 every month and earn 5% a year with monthly compounding, after 10 years you will have PLN 89,051 after Belka tax. PLN 70,000 of that is your own money and the rest is interest. Enter your own figures in the calculator above.

How does the TakiTax compound interest calculator work?

The calculator behaves like a savings account with a fixed interest rate. All calculations run in your browser.

• Compounding: interest on the balance is credited at the end of each period – a day, month, quarter or year – and from then on it earns interest together with your capital.
• Regular contributions: monthly, quarterly or yearly, at the start or end of each contribution period. A payment made during a compounding period earns simple interest until that period ends, just like in a bank account.
• Belka tax: 19% of every interest amount credited, as on a bank deposit, so 81% of the interest keeps compounding.
• Inflation: when switched on, the calculator shows the real value – what the capital would be worth in prices as of your first payment.

Example: PLN 10,000 plus PLN 500 a month for 10 years

At 5% interest, with payments at the start of each month and Belka tax applied, more frequent compounding gives a little more, but the differences are small.

Without Belka tax, e.g. in an IKE account, monthly compounding would give PLN 94,435 – PLN 5,383 more. With 3% annual inflation, PLN 89,051 in 10 years will be worth what PLN 66,263 is worth today.

When is Belka tax charged on interest?

In Poland, interest and other capital gains are taxed at 19%, a tax commonly called “Belka tax”. On deposits and savings accounts the bank withholds it on the day the interest is credited, and that is how the calculator works. With investment funds and ETFs you pay tax on the gain only when you sell, so the whole gain keeps compounding until then. IKE, IKZE and PPK accounts pay no Belka tax while you save; whether and how much you pay on withdrawal depends on the rules of each product, so untick the tax box for these accounts.

Compound interest FAQ

How is compound interest different from simple interest?

With simple interest you always earn interest on the same amount; with compound interest you earn it on the capital plus the interest credited earlier. Without extra payments, PLN 10,000 at 5% for 10 years earns PLN 5,000 of simple interest and PLN 6,470 with monthly compounding (before tax).

Which compounding frequency is best?

The more often interest is credited, the more you earn, but the differences are small. In the example above, daily compounding gives about PLN 426 more than yearly compounding after 10 years. The rate, the period and regular payments matter much more.

Is it better to pay in at the start or the end of the month?

A payment at the start of a period works for one period longer. In the PLN 500-a-month example, paying at the start of each month gives PLN 249 more after 10 years than paying at the end.

Why is gross interest lower when the tax is on?

Tax withheld at every compounding does not stay in the account, so it earns no further interest. In the example, gross interest falls from PLN 24,435 to PLN 23,520, and the tax itself is PLN 4,469.

Will the result match my bank deposit?

It may differ slightly. Banks round interest and tax to the grosz, count the actual number of days in each month and may change the rate. Some deposits credit interest only at the end of the term – in that case choose the compounding that matches the deposit term.

Does the calculator store my data?

No. The calculations run in your browser and nothing is sent to a server. Results are for education only and are not financial or tax advice.