Calculate compound interest
Calculate compound interest with or without monthly contributions. Ideal for long-term saving and investing.
What is compound interest?
Compound interest means that you receive interest on your original amount as well as on previously accrued interest . This is also known as interest on interest and is a powerful effect for long-term saving and investing.
With this tool, you can easily calculate how much your wealth grows through compound interest, optionally with a fixed monthly deposit.
How does compound interest work?
The basic formula for compound interest is:
Final amount = initial amount × (1 + interest rate) ^ term
If you also make periodic deposits, additional capital is added in each period before the interest is recalculated.
When do you use this tool?
- calculate savings
- estimate investment goals
- pension planning
- simulate asset growth
- financial education
Who is this tool suitable for?
- private individuals
- investors
- students
- financial advisors
- everyone who wants to build wealth
Simple vs. compound interest
Single
Composite
interest only on the starting amount
interest on interest
linear growth
exponential growth
short term
long term
Frequently Asked Questions
Is a monthly contribution mandatory? No, this field may remain empty or be 0.
Does the tool calculate with annual or monthly interest? The interest is annual, but is converted for a monthly term.
Is this an exact prediction? No, it is an indication based on fixed assumptions.