TheFreeTool

Compound Interest Calculator

Enter what you start with, what you add each month and the interest rate. You will see what your money could grow to, and how much of that is interest.

$
$

Good to know

This is an estimate for general information. It is not tax, legal or financial advice. Your payslip can differ because of tax codes, credits, local taxes, benefits and your employer's rules. Check official guidance or ask a qualified adviser.

What it does

  • Starting amount plus regular monthly savings
  • Daily, monthly, quarterly, half-yearly or yearly compounding
  • Shows how much you paid in and how much interest you earned
  • Works in any currency from the currency menu

How to use it

  1. Enter your starting amount and what you will add each month.
  2. Enter the yearly interest rate and the number of years.
  3. Choose how often interest is added, then read your future value.

What is compound interest?

Compound interest means you earn interest on your interest. In year one you earn interest on what you put in. In year two you earn interest on that money and on the interest from year one. The longer the money stays, the faster the balance grows.

The calculator adds each month's saving at the end of the month and compounds at the rate you choose. Real accounts differ in fees, taxes and rate changes, and returns on investments are never guaranteed, so use it as an illustration.

Example

Start with $10,000, add $200 a month and earn 6% a year, compounded monthly. After 20 years the balance is about $125,500. You paid in $58,000, so roughly $67,500 of it is interest.

Questions people ask

How often should interest compound?
More often is slightly better, but the difference is small. Monthly is a common default for savings accounts.
Does it include tax or fees?
No. Taxes and account fees would lower the result, so check your own account terms.
Can I use a negative rate?
Yes, down to minus 50%, which can show what steady losses do to a balance.

Disclaimer

This tool is for general information only. It is not financial, tax, investment or legal advice, and results are estimates that may differ from your bank, lender or tax authority. Rates, limits and tax rules change. Bank and brand names are used only to describe what the tool does; they belong to their owners and we are not affiliated with them. Check the figures with a qualified professional or your provider before you decide. You use this tool at your own risk, and TheFreeTool is not liable for any loss that follows. Read the full disclaimer

Was this tool helpful?