Bank Bonus Calculator
What a bank bonus is really worth after fees, taxes, and the interest your money could earn elsewhere.
Free · No sign-up · Runs in your browser, nothing you enter is sent anywhere
From the first deposit until you move it out: the bonus requirement plus waiting for it to post.
e.g. your high-yield savings APY.
e.g. an early-closure fee.
Federal plus state, if you know it.
You keep, after tax and lost interest
$195.63
Worth it on these numbers.
Effective APY
24.34%
Bonus and interest, less fees, as a yearly rate on the money tied up (before tax).
Break-even rate
24.34%
Worth it unless your money already earns more than this.
The math
- Bonus
- $300
- Interest in the new account
- +$0.12
- Interest you give up elsewhere
- −$49.32
- Fees and costs
- −$0
- Before tax
- $250.81
- Estimated tax
- −$55.18
- You keep
- $195.63
$5,000 deposited in total, but only $5,000 on average over 90 days: that average is what the lost interest is based on.
What the calculator does
It adds the bonus and any interest the new account pays, then subtracts fees, the interest your money would have earned elsewhere, and estimated tax. What’s left is what the bonus is really worth to you.
Example
A $300 bonus for depositing $10,000 for about three months, when your savings earn 4%: you give up roughly $100 of interest, leaving about $200 before tax. At a 22% tax rate you keep around $156. Still worth doing, but well short of the headline $300.
Method
- Average balance: each deposit counts from the day it arrives until the money leaves (time-weighted).
- Interest either side: average balance × rate × days ÷ 365.
- Monthly fees: charged for each month or part month the account is open.
- Tax: your rate applied to the bonus and interest earned, less the tax you’d have paid on the interest given up.
- Effective APY: the bonus plus interest, less fees, as a yearly rate on the average balance, before tax.
Keep in mind
- These are estimates from your inputs, not tax or financial advice.
- Confirm fees, fee waivers and requirements with the bank; they vary by offer and state.
Questions
Are bank account bonuses taxable?
Generally yes. Banks usually report them as interest income, often on a 1099-INT, so they're taxed at your ordinary rate. Credit card bonuses earned by spending are usually treated differently. This is general information, not tax advice.
Why does the calculator count interest I'd lose?
Money parked in a bonus account usually earns little. If it would otherwise sit in a high-yield savings account, the interest you give up is a real cost of the bonus.
Why is my average balance lower than what I deposit?
With recurring direct deposits, the money arrives in stages, so less is tied up at the start. The calculator averages the balance over the days it's held, which is a fairer measure of the cost.
What does the break-even rate mean?
It's the rate at which keeping your money where it is would earn exactly as much as taking the bonus, after tax and fees. If your savings earn less than that, the bonus comes out ahead.