Compound Interest & Recurring Savings Calculator
Calculate the future value of savings or investments with recurring contributions, compounded over time.
Calculate compound interest for savings or investments, with the option to add a recurring monthly deposit, plus a visual growth chart over time. The tool helps you clearly see the power of compounding and plan long-term savings for goals like retirement, buying a home, or an emergency fund.
📖 See the detailed guide: How to Calculate Compound Interest and Why You Should Start Saving EarlyHow to use Compound Interest / Savings
- Enter the initial amount, the annual interest rate (%), and the number of years you plan to save.
- Enter a recurring monthly deposit (if any).
- See the final amount, total principal contributed, total interest, and the growth chart.
What is compound interest, and why is it so powerful?
Compound interest is "interest earning interest": each period's interest is added to the principal, so the next period earns interest on a larger total. The longer you leave it, the faster it grows exponentially — which is why Einstein is said to have called compound interest "the eighth wonder of the world." The earlier you start, the more pronounced the effect.
Why make regular monthly deposits?
Combining regular deposits (a form of automatic saving) with compound interest results in a much larger final amount than a single lump-sum deposit. This is the same principle behind regular saving or dollar-cost averaging (DCA): small monthly discipline creates a big difference over the years.
A note on inflation and risk
The final figure is a nominal value; real purchasing power is eroded by inflation, so the real interest rate = interest rate − inflation rate. Also, higher interest rates usually come with higher risk (stocks, crypto) rather than the certainty of a savings deposit. Use an interest rate that's realistic for the channel you choose.
Frequently asked questions
How is compound interest different from simple interest?
Compound interest adds interest to the principal so the next period earns interest on the previous interest too, growing much faster than simple interest (which only calculates interest on the original principal) over a long period.
Is it beneficial to make additional monthly deposits?
Very beneficial. Making regular deposits combined with compound interest results in a significantly larger final amount than a single lump-sum deposit.
When should you start saving or investing?
As early as possible. Since compound interest grows exponentially, starting even a year earlier can create a huge difference in the final amount, even with a small initial sum.
Does the result already account for inflation?
No. The figure is a future nominal value; to find the real purchasing power, you need to subtract the estimated inflation rate for that period.