Compound Interest Calculator
See how your savings grow with compound interest and regular contributions.
Tip: Compound interest earns interest on previous interest too, so time is your ally. Start early and contribute regularly.
Did this tool help?
About this digital tool
Compound interest means you earn interest not only on your starting capital, but also on the interest already added. The more often interest is capitalised (monthly, quarterly or yearly) and the longer you invest, the faster the balance grows.
You can add regular contributions to see how your savings build up over time. The result is an estimate: actual returns depend on the product, and deposit or investment rates can change.
How to use
- Enter the starting capital and the regular contribution.
- Set the annual rate and the period.
- Read the final amount and the interest earned.
Frequently asked questions
How often is interest compounded?
It depends on the product: monthly, quarterly or yearly. The more often interest is added, the higher the final result for the same annual rate.
What is the compound interest formula?
A = P × (1 + r/n)^(n×t), where P is the principal, r the annual rate, n the number of times interest is added per year and t the number of years. For example, 100,000 lek at 4% a year, compounded once a year for 10 years, grows to about 148,000 lek.
What is the difference between simple and compound interest?
Simple interest is calculated only on the starting amount, while compound interest is also calculated on the interest already earned. Over the long term compound interest grows much more.
Does adding money every month help?
Yes. Regular contributions increase the amount that interest is calculated on, which speeds up growth. Even small monthly amounts make a noticeable difference after several years.