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Compound Interest Calculator

How your investments grow over time using the power of compound interest?

How much do you want to invest?

How much do you want to invest?
Your starting capital, which you want to invest right from the start (it could also be 0€ if you only want to save monthly).
How much can you deposit every month?
How much do you want to invest monthly (can also be 0€ if you only want to invest once at the beginning).

For how long?

For how many years do you want to invest?
Here you enter your investment period in years. If you have a monthly savings rate, this is also your savings period.
Years

Interest rate

At an interest rate of...
The interest rate you receive year after year over your investment period, this will depend on the type of investment you make.
%
At an interest rate of...
The interest rate you receive year after year over your investment period, this will depend on the type of investment you make.
%
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How much do you want to invest?

The compound interest effect is one of the most important helpers in long-term wealth accumulation. Many people know this, but very few can actually imagine how much compound interest will affect their investments in the long term.

For this reason, we have designed this compound interest calculator for you, which shows you the compound interest effect with just a few settings and supports you in calculating compound interest.

Total Deposits

Interest Payments Received

Final Capital

If you invest xxx€ a month at xxx% over xx years, you will end up with a final capital of €xxx. These consist of €xxx in deposits and €xxx in interest or capital gains.

Compound interest calculator

The concept behind the compound interest calculator - You probably remember the winter of 2020, when the Corona case numbers went through the roof. It was beyond your imagination how quickly the cases increased. If we look at the reason for this increase, it is exponential growth, which everyone knows now after Corona. Exponential growth means that the growth is not constant every day, as for example with 2,000 new cases a day, a higher number of new cases were added every day. 2,000 cases became 4,000, which became 16,000, which in turn became 256,000 new cases, and this kept on increasing day by day. During Corona, we all suffered because of this exponential growth.

But when it comes to investing, the concept of exponential growth is your friend. So, you can profit from it. Because when you invest, you get profits - these are called interest. You can have this interest paid out every year and use it to buy a new mobile phone, for example. But if you don't do that and just leave it there instead, you get interest on your interest. What does that mean in concrete terms? Let me explain with an example: if you invest 1,000 euros starting capital and 100 euros monthly over 30 years, you have actively paid in a total of 37,000 euros. However, there are not 37,000 euros in your securities account, but over 90,000 euros.

So where does the difference of 53,000 euros come from? It comes from interest and the compound interest effect, i.e. its exponential growth. This is similar to the Corona figures I mentioned at the beginning. You didn't lift a finger for the compound interest money, you just let the money work for you. Einstein even described this concept of compound interest as the "Eighth Wonder of the World" - because it is probably one of the easiest ways to grow money.

You will understand the power of compound interest with the following example. Imagine that Anna starts investing at the age of 20 while Lukas starts at age 30. Both pay in 200 euros a month until they are 60 years old. Anna's 10-year head start makes a huge difference due to compound interest. While Anna accumulates 620,000 euros, Lukas will only have 270,000 euros. Of that, Anna has received a massive 525,000 euros through interest and Lukas only 200,000. Remember: When investing, you can make your money work for you. The sooner you start, the sooner you can reap the benefits of compound interest.

This is how you use the compound interest calculator. You already know that you can benefit from compound interest when you invest. The sooner you start, the better! Let's take a look at the information you need to enter in order to calculate your potential compound interest effect.

Initial capital. This is the money that you may have already invested. Otherwise, this money is currently still in your account and is eagerly waiting to be invested. Please note that it is always advisable to keep a reserve for emergencies that you do not invest. For example, you might need it if your washing machine breaks down or your car needs repairing. A good rule of thumb for the so-called "emergency fund" is two months' net salary.
If you don't currently have any initial capital available, simply leave the slider at 0. You will be amazed at how much you can achieve with monthly payments.

Monthly deposit.  This is the money you want to invest each month. A good guideline for this is 20% of your income. But don't let this put you under pressure. Of course, you can also start with less money and keep increasing the amount until you reach the targeted 20%.

Investment horizon. This is about how long you want to invest your money. For example, if you want to invest your money until retirement, the calculation looks like this: Retirement age (currently 67) - your current age. Of course, you can also invest money for your own home or for your children. Be aware that you should not invest money that you will need in the near future. This is because the market fluctuates up and down and you may have to sell your investments at an inappropriate time in case an emergency arise.

Interest rate. The interest rate is the biggest unknown in the calculation of the compound interest effect. We are talking about an average here, so there can be better and worse years. The MSCI World has given its investors an average return of 9% since 1975. This can also be a good reference point for your calculation. However, keep in mind that if you hedge your portfolio with, for example, bonds, your return may be lower.

Other calculators that can help you with this: 

Calculator: Plan your financial goals 

Calculate initial capital: How much money do you need to invest today for your financial goal?

Calculate final capital: Invest money & then just put your feet up

Financial Freedom Calculator: How much do I need to invest monthly in order to retire early?