How to use
- Enter the initial amount and your monthly contribution.
- Set the expected annual interest rate and the number of years.
- Read the future value, total deposits and interest earned – the table shows each year.
The compound interest effect
With compound interest, you earn interest on your interest. Savings therefore grow exponentially rather than linearly – the longer the period, the stronger the effect. At 5% interest, an amount doubles in about 14 years.
The calculator assumes contributions are made at the start of each month. Taxes, inflation and fees are not included. For stocks or ETFs returns fluctuate, so the rate is only an average.
Frequently asked questions
What's the difference between annual and monthly compounding?
With monthly compounding, interest is credited every month and starts earning interest right away. At the same rate this gives a slightly higher final amount.
Are taxes taken into account?
No. Taxes, inflation and fees are not included. The result is a gross value.
Is this financial advice?
No. The calculator only shows a mathematical projection and is not an investment recommendation.