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Compound Interest Calculator

Discover the potential of your investments with our compound interest calculator.

This powerful tool helps you visualise how your savings and investments could grow over time through compound interest. Whether you are planning for retirement or building long-term wealth, our calculator provides valuable insights into your financial future.

Use our calculator

Capital at risk

Please do remember that as with all investments, your capital is at risk.  Past Performance is not an indication of future performance.

How to calculate compound interest?

Our compound interest calculator requires just four key inputs from investors:

  1. The initial deposit represents your starting capital
  2. The monthly contribution shows how regular additions boost your investment growth
  3. The time frame determines how long compound interest or growth works in your favour
  4. The interest or growth rate reflects your expected annual returns

The compound interest formula used is: A = P(1 + r/n)^(nt)

  • A is the final amount
  • P is the principal (initial amount)
  •  r is the annual interest or growth rate
  •  n is the compounding frequency (number of times interest is compounded per year)
  •   t is the time in years that the money is invested

It is also important to note that the final amount displayed from the compound interest calculator depends on several factors. These include the assumptions that contributions remain constant, interest or growth rates stay unchanged, and no withdrawals are made during the investment period. Market conditions, fees, and other factors may also affect actual returns.

How much could my savings be worth?

Initial deposit (capital)

£
£0 £10,000,000

Monthly contribution

£
£0 £50,000

Term (time saved)

year

Return % (AER)

1%
After 1 year
£0
Your contribution
£0
Growth
£0

For illustration purposes only, assuming annual compound interest, ignoring inflation. Forecast is not an indicator of future growth, which depends on the performance of chosen investments. Capital is at risk and past performance is not a reliable indicator of the future.

Capital at risk

Please do remember that as with all investments, your capital is at risk.  Past Performance is not an indication of future performance.

Peak Savings

The power of compound interest in long-term saving and investments

The true power of using our compound interest calculator becomes evident through long-term planning, investing, and strategic decision-making.

By starting early, you can give the power of compounding more time to significantly impact your wealth, with even small initial investments potentially growing into substantial sums over decades. Making regular contributions can amplify this effect, as each new deposit of capital immediately begins earning compound interest.

The frequency of contributions also matters, since interest compounded daily grows faster than interest compounded annually. To maximise compound interest benefits, consider making regular contributions and resist the temptation to withdraw funds early.

Also, you can choose appropriate investment vehicles that offer competitive returns whilst aligning with your risk tolerance and time horizon. For example, our Individual Savings Account (ISA) allows you to take advantage of tax-efficient investing while harnessing the power of compound interest for your long-term financial goals.

Our insights

Stay informed about the latest saving and investment strategies with our expert insights and analysis. Our in-depth articles and resources cover market trends, investment opportunities, and practical advice for maximising your financial growth through strategic use of compound interest and diversified investment approaches.