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Compound Interest Calculator

Calculate how compound interest grows savings or increases debt over time. Enter principal, rate, compounding frequency and term to project your final balance.

Last reviewed 15 August 2026Source: FCA — Investment basics

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Rates & sources

Compound growth assumes reinvested returns and no platform fees. Past performance is not a guide to future returns.

Source: FCA — Investment basics — check the linked guidance and any live quote before acting.

When to use this calculator

  • Before choosing between saving, investing or changing a contribution.
  • When you want to compare cautious, base and optimistic return assumptions.
  • When you need a projection before making a longer-term decision.
  • When you want to see whether starting earlier or contributing more changes the outcome more.

Example: seeing compounding do the heavy lifting

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Example: seeing compounding do the heavy lifting
InputValue
Starting amount£15,000
Monthly contribution£250
Annual return assumption6.5%
Investment period10 years

This example works because it shows how a steady contribution plan compounds more meaningfully in the later years. That makes the trade-off between time and return easier to judge.

How to read your results

Total

The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.

Interest Earned

Growth separated from original capital so you can compare savings or investment scenarios on an equal footing. Tax treatment depends on the account and jurisdiction.

Method & assumptionsAuthoritative sources

This calculator uses the standard compound interest formula: A = P(1 + r/n)^(nt), where P is your principal, r is the annual interest rate expressed as a decimal, n is the number of compounding periods per year, and t is the number of years. It assumes a constant interest rate throughout, which is rarely guaranteed in practice — savings rates change, and investment returns fluctuate. The results are nominal figures and do not account for inflation, tax, or product charges. UK savers should note that the AER figure on savings products already standardises for compounding frequency, making it the fairest basis for comparison. This tool is for illustrative purposes only and does not constitute financial advice.

Common mistakes

  • !Assuming a constant return without checking a more conservative growth rate.
  • !Forgetting ongoing contributions, fees or tax wrappers where relevant.
  • !Focusing only on the final balance instead of the path required to reach it.
  • !Ignoring the drag of charges over a long period.

What to do next

  • Test a cautious, expected and optimistic growth rate.
  • Compare this result with related savings or retirement tools before committing more money.
  • Consider charges and any tax wrapper that applies.
  • If the projected balance falls short, increase the contribution until the result meets your goal.

Go deeper — 4 guides reference this calculator

Frequently asked

The compound interest calculator applies your interest rate compounded at regular intervals (daily, monthly, quarterly, or annually) over your investment period. Interest earned is added to principal, then earns interest itself, creating exponential growth.

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