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Compound Interest Calculator
See how your savings or investments grow over time with compound interest.
๐ 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
๐ก Investment Tips
โ
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.
๐ฆ Use a Stocks & Shares ISA โ all growth is completely tax free. ยฃ20,000/year allowance.
๐ก The UK stock market has historically returned ~7% annually (including dividends). Use this as a benchmark.
๐ก Even increasing your monthly contribution by ยฃ50 can add tens of thousands over 20+ years.
๐ 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.