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Investing

Compound Interest Calculator

See what a starting pot plus regular monthly saving grows into, and how much of the final number is interest rather than money you put in.

Your details

£
£

Added at the start of every month.

4.5%

Use the nominal rate, not AER. If you only have AER, choose annual compounding below. Returns are assumptions, not guarantees.

10 years
Advanced options▾
0.0%

If you plan to save more as your pay rises.

Updates as you change the figures. No submit button needed.

Result

£31,920

after 10 years. 22% of that is interest you did not have to earn.

Y1Y2Y4Y6Y8Y10
Balance Paid inThe gap is your interest
Starting amount£1,000
Total paid in£25,000
Interest earned£6,920
Final balance£31,920
Money doubles roughly every16 years

How we calculate this

Contributions are added at the start of each month. We divide the nominal annual rate by the selected number of compounding periods, then convert that period rate to an equivalent monthly growth rate. A deposit earns interest only for the time it is invested, including fractional quarters or years. Actual savings-account daily accrual can differ.

The rate is applied before tax. Interest inside a Cash ISA or Stocks and Shares ISA is tax-free. Outside one, the Personal Savings Allowance covers £1,000 of interest for basic-rate taxpayers and £500 for higher-rate, with anything above taxed at your marginal rate. Investment returns are not fixed and can be negative in any given year; the calculator shows a smooth average, which real markets never deliver.

The doubling figure uses the rule of 72: divide 72 by the annual rate for a quick estimate of the years it takes money to double.

This tool is for general guidance only and is not financial or tax advice. Always check your own circumstances, ideally with a qualified adviser or accountant, before making decisions.

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