Compound interest is a simple strategy to make more money over time with the interest you are getting from your bank, for example a savings account. Since the interest is generated both on the principal and the accumulated interests over time, you can expect to make more money over time compared to a simple interest model, which ignores the effect of the accumulated interest.
This calculator helps you estimate how much growth you can expect to have if the annual interest rate stays the same.
* This formula doesn't take inflation into consideration
The formula for compound interest and the final balance on your account are defined as:
\(CI\): Compound interest
\(P_{final}\): The final balance on your account after a number of years
\(t\): How long do you expect to leave your money in the account?
\(P_{initial}\): The initial amount you would like to deposit
\(rate\): The annual interest rate
\(n\): How many times does the bank pay interest per year? 12 if monthly and 1 if annually
\(years\): How many years do you expect to leave your money in the account?
\(months\): How many additional months do you expect to leave your money in the account? Enter 0 if none.
Single Deposit
Use this calculator to figure out how much money you would be making if you were to deposit once in a savings account and leave it for a number of years.
The initial amount you would like to deposit
How many times does the bank pay interest per year? 12 if monthly and 1 if annually
How many years do you expect to leave your money in the account?
How many additional months do you expect to leave your money in the account? Enter 0 if none.
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
