Calculator
Compound interest calculator
See how your savings or investments grow with regular deposits and compound interest.
Future balance
$109,333
- Total deposits
- $58,000
- Interest earned
- $51,333
- Share from interest
- 47%
Year-by-year growth
DepositsInterest earnedYears
| Year | Total deposits | Interest earned | Balance |
|---|---|---|---|
| 1 | $12,400 | $567 | $12,967 |
| 2 | $14,800 | $1,287 | $16,087 |
| 3 | $17,200 | $2,165 | $19,365 |
| 4 | $19,600 | $3,212 | $22,812 |
| 5 | $22,000 | $4,435 | $26,435 |
| 6 | $24,400 | $5,843 | $30,243 |
| 7 | $26,800 | $7,446 | $34,246 |
| 8 | $29,200 | $9,254 | $38,454 |
| 9 | $31,600 | $11,277 | $42,877 |
| 10 | $34,000 | $13,527 | $47,527 |
| 11 | $36,400 | $16,014 | $52,414 |
| 12 | $38,800 | $18,751 | $57,551 |
| 13 | $41,200 | $21,751 | $62,951 |
| 14 | $43,600 | $25,028 | $68,628 |
| 15 | $46,000 | $28,595 | $74,595 |
| 16 | $48,400 | $32,467 | $80,867 |
| 17 | $50,800 | $36,660 | $87,460 |
| 18 | $53,200 | $41,190 | $94,390 |
| 19 | $55,600 | $46,075 | $101,675 |
| 20 | $58,000 | $51,333 | $109,333 |
Questions people ask
What is compound interest?
Compound interest is interest earned on your interest. Each time interest is added to your balance, the next calculation uses the bigger balance, so growth speeds up the longer you leave the money invested.
How is compound interest calculated?
The balance after t years is P × (1 + r/n)^(n × t), where P is the starting amount, r the annual rate and n the number of times interest compounds each year. This calculator also adds your monthly deposits and compounds them the same way.
How much does $10,000 grow at 5% for 10 years?
Compounded annually, $10,000 at 5% grows to about $16,289 after 10 years. Compounded monthly, it grows to about $16,470.
Does compounding frequency matter?
A little. At the same rate, more frequent compounding earns slightly more, but the rate itself and how long you invest matter far more. Compare accounts by their annual rate and how often interest is paid.
What is the rule of 72?
Divide 72 by the annual rate to estimate how many years it takes to double your money. At 6%, money doubles in about 12 years.
Is compound interest taxed in Canada?
Interest earned outside a registered account is taxable income each year. Inside a TFSA it grows tax-free, and inside an RRSP tax is deferred until you withdraw. This calculator shows growth before tax.
Results are estimates before tax and fees, assuming a constant rate. Savings rates change, and investment returns are not guaranteed. WalletReturn is independent; check current rates with the provider.