With an installment plan, each deposit earns interest only from the month it is paid in, so the total interest is about half of 'principal × rate'.
How it works
- Installment (simple): interest = monthly amount × rate ÷ 12 × n(n+1) ÷ 2
- Lump sum (simple): interest = principal × rate × months ÷ 12
- Tax is applied to interest only.
Results are estimates for reference only. Please confirm important decisions with the relevant authority or a professional.