How compound interest works
With compound interest, earned interest is added to the balance and earns interest itself. Over long periods this snowball effect becomes powerful, which is why starting early matters.
This calculator simulates month by month, including regular deposits. Results are estimates and ignore taxes and fees.
How to use the Interest Calculator
- 1Enter the starting amount, rate and number of years.
- 2Optionally add a monthly deposit.
- 3Read the final balance and the yearly table.
Frequently asked questions
Yearly or monthly crediting?
Monthly crediting gives slightly more because interest starts earning interest sooner.
Are taxes included?
No. The result is before taxes and fees.