Compound Interest Calculator
Work out the compound interest on your savings using these calculators. The first calculator works out interest on a lump savings amount. The second calculator allows you to include regular monthly savings deposits. You can choose whether to have interest compounded monthly or yearly. Savings calculations are displayed on a year-by-year basis. Unsure of what compound interest is?
Whilst every effort has been made in building this compound interest calculator tool, I am not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of the calculation tools and information derived from the web site. This compound interest calculator is provided purely as a service to you, please use it at your own risk.
Any calculations given by this compound interest calculator are for guide purposes only. An independent financial advisor should be consulted for professional guidance.
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Choosing when interest is paid
This savings calculator allows you two options for calculating interest. With some savings accounts, interest can be calculated and paid in at the beginning of the following month or year. However, to give you an idea of the amount you will have earned from your money in that set period, you may wish to leave it calculating and adding interest at the end of the same month or year (end of month/year option). This appears to be the most common method of calculation with other online savings calculators.
What is compound interest?
Compound interest is the concept of adding accumulated interest back to the principal sum, so that interest is earned on interest from that moment on. The act of declaring interest to be principal is called compounding. As an example, a loan may have its interest compounded every month: in this example, a loan with $100 principal and 1% interest per month would have a balance of $101 at the end of the first month. For more information on compound interest, please see this Wikipedia article.
