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See how your savings grow with compound interest over time
Use this savings calculator to project what your money becomes: enter a starting amount, what you add each month, the interest rate and how long you plan to save. It compounds the interest for you and shows how much of the final balance is your own deposits and how much the interest earned on them.
Saving $500 a month at 4.5% grows to $34,825 after 5 years and $196,518 after 20 — of which $75,518 is interest rather than money you put in. That gap is the whole point of compounding, and it widens the longer you leave it alone.
| Term | Final balance | You deposit | Interest earned |
|---|---|---|---|
| 5 years | $34,825 | $31,000 | $3,825 |
| 10 years | $77,166 | $61,000 | $16,166 |
| 20 years | $196,518 | $121,000 | $75,518 |
Starting from $1,000, compounded monthly. Interest on savings is taxable income in Australia, so your after-tax result will be lower than the figures above.
Regular amount you add each month (can be $0)
How often interest is calculated and added to your balance
Final Balance
$91,269
Interest Earned
$21,269
Shown in future dollars. At 2.5% inflation, $91,269 in 10 years buys about $71,299 of today's goods.
Total Contributions
$70,000
Growth Percentage
30.4%
Year 1
Contributions: $16,000
$16,585
+$585 interest
Year 2
Contributions: $22,000
$23,472
+$887 interest
Year 3
Contributions: $28,000
$30,676
+$1,204 interest
Year 4
Contributions: $34,000
$38,210
+$1,535 interest
Year 5
Contributions: $40,000
$46,091
+$1,881 interest
Year 6
Contributions: $46,000
$54,333
+$2,243 interest
Year 7
Contributions: $52,000
$62,955
+$2,621 interest
Year 8
Contributions: $58,000
$71,972
+$3,017 interest
Year 9
Contributions: $64,000
$81,404
+$3,432 interest
Year 10
Contributions: $70,000
$91,269
+$3,865 interest
Compound interest is interest calculated on both your initial deposit and the accumulated interest from previous periods. Your money grows exponentially because you earn interest on your interest.
Einstein allegedly called compound interest the 'eighth wonder of the world'. The earlier you start and the longer you save, the more dramatic the compounding effect.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
What can move this result
Why these default assumptions are reasonable
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.