โœ“Data sourced from gov.ukโœ“Updated for 2025-26 tax yearโœ“HMRC rates & thresholdsโœ“Free to use
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Compound Interest Calculator

See how your savings or investments grow over time with compound interest.

๐Ÿ“– What is compound interest?

Compound interest means you earn interest on your interest โ€” your returns are reinvested, so your money grows exponentially over time. The longer you invest, the more dramatic the effect. Starting early makes a massive difference.

Example: ยฃ5,000 at 7%/yr for 30 years grows to ~ยฃ38,000 without adding a penny. Add ยฃ200/mo and it becomes ~ยฃ260,000.

ยฃ
ยฃ
0.5%Cash ISA ~4%Stocks ~7%20%

Final Balance

ยฃ124,379

Total Contributed

ยฃ53,000

Interest Earned

ยฃ71,379

๐Ÿ’ก Investment Tips

โœ… Start early โ€” with these numbers, starting 10 years later would leave you with ยฃ44,665 instead of ยฃ124,379 โ€” that's ยฃ79,714 less due to compound growth.
๐Ÿฆ Use a Stocks & Shares ISA โ€” all growth is completely tax free. ยฃ20,000/year allowance.
๐Ÿ’ก The UK stock market has historically returned ~7% annually (including dividends). Use this as a benchmark.
๐Ÿ’ก Even increasing your monthly contribution by ยฃ50 can add tens of thousands over 20+ years.

๐Ÿ“ˆ Growth over time

Stacked: initial amount ยท monthly contributions ยท interest earned

Sources & References

Returns shown are illustrative. Past performance is not a guide to future returns.