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Compound interest calculator

Use our compound interest calculator to find out how your investment will grow over time.

Details 🚀





Result 💰

Total Balance


Total Principal


Total Interest


How the compound interest calculator works

You have to enter four values in the interest calculator:

  • Starting balance: This is the amount you invest at the beginning of the term. You can also enter «0» here.

  • Monthly contribution amount This is the amount you want to deposit each month. If you do not want to make any deposits, you can also enter the value «0».

  • Time to grow (in years):  This is the period of time during which your money is invested.

  • Annual interest rate (in percent): This is the interest rate you receive per year on your total balance.

The calculator shows you the final capital, the total deposits and the interest received. These values are rounded to the nearest 5 centimes:

  • Total Balance: The final capital is made up of your total deposits and the interest received.

  • Total Principal: The sum of all your deposits (excluding interest).

  • Total interest: The total interest (and compound interest) that you have received.

Explanation of the compound interest calculator

Our compound interest calculator helps you to calculate how your starting capital will develop over the years if you invest for the long term and earn interest on this balance. The calculator takes into account the monthly deposits and calculates the interest once a year at the end of the year.

What is compound interest?

Compound interest explained 💡

In contrast to simple interest, where interest is only paid on the initial capital, with compound interest the capital grows exponentially because the interest itself generates interest. The following factors influence compound interest:

  1. Frequency of interest credits: the more often interest is credited (e.g. monthly instead of annually), the faster the capital grows. We expect interest to be credited annually, as dividends or account interest are generally paid annually. 

  2. Interest rate: A higher interest rate leads to faster capital growth.

  3. Term: The longer the money is invested, the more you benefit from compound interest.

The compound interest piggy bank 🐷

In other words, imagine a piggy bank into which you regularly put money. The special thing about our compound interest piggy bank is that it not only pays interest on the money you put in, but also on the interest that has already been added.

The snowball effect ⛄️

Compound interest works like a snowball that rolls down the mountain and gets bigger and bigger. At the beginning, the snowball is small, but the longer it rolls, the more snow it collects and the faster it grows. In the same way, the longer you invest your capital, the faster it grows due to compound interest. This is why the investment horizon is so crucial for wealth accumulation, because a long investment horizon is comparable to a particularly high mountain.

Time - your most important helper 🕰️

Using the compound interest effect is one of the simplest and most effective methods of increasing wealth with patience and discipline. Over time, even small amounts can add up to a large sum due to interest on interest. This is why it is important to start building up your wealth early and leave your money invested for as long as possible.

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