Compound interest calculator
Starting balance, monthly deposit, interest rate and time, and see the balance each year.
Balance at the end
…
| Year | Deposited | Interest | Balance |
|---|
How it’s calculated
Interest is compounded monthly. Each month the deposit is added, then interest of (annual rate ÷ 12) is applied to the balance. Results are before tax and fees.
Questions
What is compound interest?
Interest earned on both your original deposit and the interest already added. The more often interest compounds and the longer you leave it, the faster the balance grows.
Monthly or daily compounding: does it matter?
A little. At 5% a year, monthly compounding earns an effective 5.12% and daily about 5.13%. Time and the rate matter far more.
Is interest on savings taxed?
Yes. Interest is assessable income taxed at your marginal rate, so your after-tax return is lower than the headline rate.