Compound Interest Calculator

The compound interest calculator tool is a great way to see the effects of compound interest. You can use it to work out how much interest you will be paid on a month by month basis and see the dramatic effects that compound interest can have on your savings.

Here's how you can use it

It's easy to use! Go straight to the compound interest tool right now.

1. Enter the amount in your savings account
2. Insert how much you want to save per month or year
3. Enter how often you plan to make a deposit, either monthly or yearly
4. Choose a timeframe over which you plan to make your savings
5. Enter the gross monthly or annual interest rate
6. Finally, enter the saving account interest rate
7. Press calculate to see the results of compound interest on your savings

Results from the compound interest calculator

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The results show you the total saved, how much you have paid into the account, and the amount earned in interest.

It also calculates the equivalent monthly/year interest rate and tells you what the interest rate would be if compound interest was not applied. For example with an annual equivalent rate of 4% the annual non-compound interest rate is 3.93%.

The table below shows the effect of compound interest month by month.

If you have a savings target you can play with the figures and adjust the monthly savings amount and the interest rate to give you an idea of how long it will take to reach your target.

Calculating the compound interest is really important because it gives you a clear picture of exactly how much you will be paid for depositing your money with one institution or another. Remember, compound interest works in your favour because you are being paid interest every month so that you earn more and more every time interest is calculated. Just use the tool below to see.