Savings Calculator

How Does Compound Interest Work?

Compound interest means you earn interest on your interest — not just your original deposit. Over time this creates exponential growth, which is why starting to save early makes such a big difference. Even small monthly deposits add up significantly over 10–20 years.

For example, saving just $200/month at a 5% annual interest rate for 20 years results in over $82,000 — even though you only deposited $48,000. The extra $34,000 comes entirely from compound interest.

This calculator uses the standard compound interest formula and assumes a fixed interest rate over the period. Actual savings account rates vary and are not guaranteed.