Finance & trading
How much will savings grow with compound interest?
Final amount with starting capital, monthly contributions, annual rate and years.
Quick answer
Future value with monthly compounding: FV = P × (1 + r/12)^(12×t) + PMT × [((1 + r/12)^(12×t) − 1) ÷ (r/12)]. €5,000 start, €200/month, 6% annual for 20 years → roughly €109,000 total (€53,000 contributed, €56,000 interest).
Final amount
08,959.20
- Total contributed
- $53,000.00
- Interest earned
- $55,959.20
Simulation at a constant rate with monthly compounding. Real returns vary over time.
How it works
Compound interest means you earn returns on prior returns — the curve accelerates over time. Real investments fluctuate; this calculator assumes a constant rate. Fees, taxes and inflation reduce the real outcome.
Frequently asked questions
Compound interest vs simple interest?+
Simple interest applies only to the principal. Compound applies to principal plus accumulated interest — growth is exponential. At 6% over 20 years, compounding roughly doubles the interest earned vs simple on the same principal.
What annual return is realistic?+
Global stock markets averaged roughly 7–10% nominal long-term before inflation; balanced portfolios 4–6%. Savings accounts and bonds are lower. Past performance does not guarantee future returns — use conservative assumptions for planning.
Does contribution timing matter?+
Monthly vs annual contributions differ slightly because earlier deposits compound longer. Investing at month-start vs month-end shifts the result marginally. Consistency beats timing — start early.
How does inflation affect the result?+
Subtract inflation from the nominal rate for real purchasing power. 6% return with 2% inflation ≈ 4% real growth. €109,000 in 20 years buys less than today’s €109,000 — plan in real terms for retirement goals.
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