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Savings & compound interest calculator

Start with what you've got, add a bit each month, and see where you'll be.

Final balance$0
Total deposited$0
Interest earned$0

Where the money comes from

Year-by-year table

The formula

FV = P(1 + i)n + D × ((1 + i)n − 1) ÷ i

P is the starting balance, D the monthly deposit (made at the end of each month), n the number of months, and i the monthly growth rate for your compounding choice: (1 + rate ÷ k)k÷12 − 1.

Worked example

$10,000 to start, $500 a month, 5% compounded monthly for 10 years: you deposit $70,000 in total and end up with $94,111, so $24,111 of it is interest.

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Common questions

What is compound interest?

Interest on your interest. Each period, the interest you've earned is added to your balance, so next time you earn interest on a bigger amount. Over long periods this snowballs.

Monthly or annual compounding – does it matter?

A little. At 5% a year, monthly compounding works out to about 5.12% effective, and daily to about 5.13%. Regular deposits and time matter far more.

Is interest on savings taxed?

Yes. Interest is added to your taxable income. This calculator shows returns before tax.

What rate should I use?

Use your account's ongoing rate, not a short-term bonus or intro rate. For long-term investing, many people use a more conservative figure than recent returns.