Compound interest
Savings & investing
Compound interest
See how interest can grow your savings
Example values are filled in. Replace them with your own.
Example calculation
After 5 years, the estimated balance is USD 12,833.59, including USD 2,833.59 in interest.
Final balance
USD 12,833.59
Interest
USD 2,833.59
The final balance includes your starting money and interest. Interest is shown separately.
Use the same currency for all amounts. Taxes and fees are excluded unless an explicit field is provided.
See formula and assumptions
P × (1 + annual rate / compounds)^(compounds × years), with the rate expressed as a decimal.
- Starting amount
- The amount you start with, before interest or growth.
- Yearly interest rate
- Enter the annual rate quoted by the lender or account. For 5% per year, enter 5.
- Term (years)
- Example: 5. Check the time unit in the label.
- How often is interest added each year?
- Use 12 for monthly compounding or 1 for once a year.