Compound Interest Calculator

See how your savings grow over time with compound interest.

Compound interest inputs

Enter your starting balance, contribution, rate, and time horizon.

Currency

Starting amount invested or saved.

Recurring deposit made at the selected frequency.

Expected annual return before taxes, fees, and inflation.

How long the money compounds.

How often interest is added to the balance.

How often the regular contribution is added.

Annual contribution

£3,000.00

Monthly equivalent

£250.00

Rate per compound period

0.58%

Currency is used for display only. Results are nominal estimates before taxes, fees, inflation, market volatility, and account limits.

Final balance

£170,619.05

After 20 years at 7.00%.

Interest earned

£100,619.05

58.97% of final balance.

Total invested

£70,000.00

Initial principal plus total contributions.

Total contributions

£60,000.00

Monthly contributions over the term.

Principal future value

£40,387.39

Future value of the starting principal.

Contribution future value

£130,231.66

Future value created by recurring deposits.

Growth multiple

2.44×

Final balance divided by total invested.

Contribution share

76.33%

Share of final balance from recurring deposits.

Export

Save or share this growth estimate

Copy the summary, download a CSV version, or print a compact projection summary.

Growth breakdown

What makes up the final balance

20 years projection

Starting principal

£10,000.00

Initial amount

Total contributions

£60,000.00

Deposits added

Interest earned

£100,619.05

Estimated growth

Final balance: £170,619.05. Interest represents 58.97% of the final balance.

Yearly projection

Year-by-year compound growth

See how contributions and estimated interest build the balance over time.

YearOpening balanceContributionsInterestClosing balance
Year 1£10,000.00£3,000.00£821.05£13,821.05
Year 2£13,821.05£3,000.00£1,097.27£17,918.32
Year 3£17,918.32£3,000.00£1,393.46£22,311.78
Year 4£22,311.78£3,000.00£1,711.07£27,022.85
Year 5£27,022.85£3,000.00£2,051.63£32,074.48
Year 6£32,074.48£3,000.00£2,416.81£37,491.29
Year 7£37,491.29£3,000.00£2,808.39£43,299.69
Year 8£43,299.69£3,000.00£3,228.28£49,527.97
Year 9£49,527.97£3,000.00£3,678.53£56,206.50
Year 10£56,206.50£3,000.00£4,161.32£63,367.82

The yearly table is an estimate based on the selected compounding and contribution frequencies. Real account timing, fees, taxes, and investment changes can alter results.

Compounding rewards time: earlier contributions usually have the biggest effect.
Updated May 2026Formula verifiedReviewed for accuracy

Interpretation

What these compound interest results mean

Future value estimate

Your balance could grow to about £170,619.05 after 20 years based on your inputs.

Interest earned

Estimated interest is £100,619.05, which is the difference between final balance and total invested.

Contribution effect

Your recurring deposits add £60,000.00 before growth, and their future value is estimated at £130,231.66.

Time horizon

If the same assumptions continued for 5 more years, the balance could project to about £259,772.11.

Compound interest basics

How compound interest works

Principal

Principal is the starting amount that begins earning interest.

Interest rate

The annual rate controls how quickly the balance grows before taxes, fees, and inflation.

Compounding

Interest is added back into the balance, allowing future interest to build on earlier interest.

Contributions

Regular contributions can become a major part of long-term savings growth.

Formula

Compound interest formula explanation

Example using your inputs: £10,000.00 with £250.00 monthly contributions at 7.00% for 20 years could grow to about £170,619.05.

Compound interest

A = P(1 + r/n)^(nt)

A is final amount, P is principal, r is annual rate, n is compounding periods per year, and t is time in years.

Interest earned

Interest = Final Balance − Total Invested

Interest earned separates growth from the money originally invested or contributed.

Growth multiple

Growth Multiple = Final Balance ÷ Total Invested

Growth multiple shows how many times the invested money became after compounding.

Growth drivers

What affects compound growth

Time

Longer time horizons give interest and contributions more years to compound.

Return rate

Higher assumed rates can increase future value, but may involve higher risk for investments.

Contribution habit

Regular contributions can matter more than small differences in compounding frequency.

Frequency

More frequent compounding can help, though the effect may be modest compared with rate and time.

Inflation

Inflation can reduce the purchasing power of the future balance.

Taxes and fees

Taxes and account fees can reduce real-world returns.

Comparison

Compound interest vs simple interest

Without contributions

£40,387.39

The starting principal alone would grow to this amount with the selected rate and compounding frequency.

With contributions

£170,619.05

Regular contributions increase the projected balance and give more money time to compound.

Use cases

Common compound interest calculator use cases

Savings goals

Estimate how regular deposits can grow toward a future savings target.

Retirement planning

Model long-term contributions and growth over many years.

Investment projections

Test different return assumptions for a portfolio or fund.

Education savings

Estimate how savings could grow before future education costs.

Emergency fund growth

See how interest can add to cash reserves over time.

Long-term wealth building

Understand how starting early can affect future balances.

Trust

About this estimate

Transparent method

Uses compound interest math plus recurring contribution growth to estimate future value.

Real-world limits

Results are nominal estimates and do not include taxes, fees, inflation, market volatility, or account limits.

Planning focused

Compare starting balances, contribution habits, time horizons, return assumptions, and compounding frequency.

FAQ

Compound interest calculator questions

Compound interest is interest earned on both the original principal and previously earned interest. Over time, this creates interest on interest.