Compound interest calculator
See how your money can grow over time with the power of compounding. Whether you invest in ETFs, savings plans, or other assets, even small contributions today can turn into significant wealth in the future.
Calculate your compound interest
Compound interest is when the interest you earn, earns interest
The initial deposit amount to be deposited
The amount to be deposited each month
The interest that will be added to the amount each year (in percentage)
The number of years for which monthly deposits will be made
Your estimated savings
Total deposit amount
0
Total profit amount
0
Your estimated savings
0
What is a compound interest calculator?
A compound interest calculator helps you see how your money can grow over time through the power of compounding. With compound interest, the interest you earn is added to your initial investment, and future interest is calculated on this larger total. By entering your starting amount, interest rate, and time period, the calculator shows the potential future value of your savings or investments. As the duration of the investment/loan increases, the effect of compound interest intensifies.
As the duration of the investment/loan increases, the effect of compound interest intensifies.
How does the calculator work?
A compound interest calculator makes it easy to project how your investments can grow over time. Simply enter your initial deposit, annual interest rate, compounding frequency (monthly, quarterly, or yearly), and investment period. The calculator then shows the future value of your money, factoring in interest that is added to the principal at each compounding period.
For example, investing NIS 10,000 at a 5% annual interest rate for 10 years will result in steady growth, as each year's interest is added to the total and the next year's interest is calculated on the new balance.
How should you calculate compound interest for the first time?
When using a compound interest calculator for the first time, it's best to start with a simple calculation: Enter basic details – Input your starting amount, annual interest rate, and investment period. If you're unsure about compounding frequency, begin with annual compounding. Check the results – Review the outcome, then adjust one parameter (such as the interest rate or time period) to see how it impacts the final balance. This helps you understand the effect of different factors. Add contributions – If you plan to make regular deposits, include them in the calculation to see how much more your investment could grow.
How often should you use a calculator?
It's recommended to use a compound interest calculator whenever you start a new investment or when the terms of an existing one change—such as a new interest rate or additional deposits. Regularly checking your accumulated balance is also important, especially for long-term investments, to ensure your savings are growing as planned.
What are the advantages of compound interest calculations?
Simplicity and convenience – Instantly calculate the future value of your investment without complicated math.
Informed decision-making – See how different factors, such as interest rate or time period, impact your returns and make smarter financial choices.
Long-term planning – Understand the growth potential of your investment over time, supporting better financial and retirement planning.
Use of compound interest in mortgages
In the mortgage industry, a compound interest calculator is a valuable tool for understanding the true cost of a loan over time. It clearly shows how interest accumulates and highlights the benefits of making extra payments or paying off your mortgage early. Even small increases in monthly payments can lead to substantial interest savings over the life of the loan.
Calculation limitations
It's important to keep in mind the limitations of a compound interest calculator. The tool assumes a fixed interest rate over the entire period, which may not reflect real market conditions where rates can change. It also doesn't account for factors like inflation or taxation, both of which can significantly impact the actual future value of your money. For long-term financial planning, these elements should be considered alongside the calculator's results.
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