Compound interest
The power of compound interest
Enter initial capital, savings rate, term and interest rate – and instantly see how your wealth grows.
- Final capital
- €526,118.31
- Total deposits
- €118,000.00
- Interest earned
- €408,118.31
at 8% p.a.
- Final capital (8%)
- Deposits
Assumptions: the savings rate is paid at the start of each month, interest is credited once a year and reinvested – deposits made during the year earn interest pro rata. Excluding taxes, costs and inflation.
This calculator is for information purposes only and does not constitute investment advice. Results are model calculations; actual returns may be higher or lower, losses are possible.
What is compound interest?
With compound interest, returns are not paid out but reinvested. The following year, interest is earned not only on your deposits but also on the interest already earned. This creates exponential growth that strengthens with every additional year.
The two most important levers are therefore time and consistency: those who start early and save regularly benefit most – often more than from a higher savings rate started later.