Compounding Calculator

Forecast and understand your predicted wealth with our free-to-use compounding calculator.

How To Use Our Compound Interest Online Calculator

Enter a starting amount that you would feel comfortable investing with. We recommend a minimum of £2,000.
Step 2
Enter a realistic monthly percentage increase that you’d like to achieve. We advise staying conservative to start. However, using our proven strategies, we recommend you should be able to see monthly returns of 3-6% per month.
Step 3
Enter an amount that you would feel comfortable investing every month. We recommend starting with £100 a month.
Step 4
Enter any extra amount that you would want to invest into your account over the next 15 years. This is the collective sum of money you may want to add (and you can leave this blank if you’re unsure).
Step 5
Calculate the compound interest you would receive over the 15-year period.

But What Actually Is Compound Interest?

Also known as ‘interest on interest’, compound interest speaks to the concept of investing your money and re-investing the interest earnt on that money. Combining regular, consistent investing over a long period of time with the power of compound interest can be incredibly effective in growing your wealth sustainably (and rapidly).

Examples of investments where the interest can be compounded include:

What Actually Is Compound Interest

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If you want to grow your wealth, understanding compound interest is essential. Albert Einstein is said to have described compound interest as the world’s eighth wonder. The concept involves earning a return not only on your original savings but also on the accumulated interest that you have made on the past investment of your savings.

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For support in understanding how to develop and use a compound interest growth strategy to increase your wealth, book a bespoke investment strategy session with our investing consultants.

Compounding FAQS

Here are some of our most frequently asked questions about our compound calculator and how it is works.

If you have run some figures through our Compounding Calculator, you will no doubt wonder if what you are seeing is true. Well, you better believe it because our calculator doesn’t lie! What you see with your eyes is the magic of compounding right there in front of you. In other words, the more you can invest, the better your investments will compound! But what should you begin with? Well, our financial data analysts reckon that £2,000 is a good sum to begin with, adding £100 minimum a month. That gets your investment off to a great start. You can then build on that over time. That, of course, is the key – TIME. Compounding works its magic over time and when you DO NOT touch this account at any time when it is growing. You start this primary investment account, keep adding to it with what you can comfortably afford each month/year – but always leave it alone. So, remember, hands off! This is your golden path to a financially secure future.
In a standard bank account or savings account or investment account, interest is always accrued on a sum of money in that account at the end of the month or year. However, compounding works a little differently because the compounding is always happening, day-to-day, even when you sleep. That all depends on what kind of compounding arrangement you have with your account provider and the interest rate they have given you. It could be daily, monthly, quarterly, half-yearly or yearly. That is the great beauty of compound interest – it’s the money your money is making, working for you, non-stop. Try our online Compounding Calculator above and punch in a few different scenarios to see just how effective compounding can be on your money. Imagine how much your investment could be worth over time. In fact, don’t just imagine it – see for yourself! After all, seeing is believing.
That’s easy – YOU! Your family. Anyone who wants to make more money, build up wealth for the future. For retirement. For special occasions. For once in a lifetime vacations, in fact anything that requires a major investment. Basically, compound interest accelerates the growth of any and all of your assets. It allows you to grow a sum of money (or more than one sum) faster than you can with simple interest. That’s because you will be earning returns not just on the money you invest but the returns at the end of each compounding period. This means you won’t need to save anywhere near as much money to achieve your objectives. Remember, saving money is not the goal here at Investment Mastery. Showing you how to GROW & MULTIPLY it, is. Compounding your investments will do this. And is the only really effective way to do so. There is nothing else like it in the world.

It’s useful to get your head around the term “effective annual interest rate” because it’s the actual annual rate of interest earned on your investment. It takes into account the effect of compounding interest and any fees or charges associated with it. It therefore represents the true annual earnings rate of your investment after factoring in compounding interest and fees. This makes it different from the nominal rate which doesn’t account for these factors. For investments with interest compounded more than once per year, the effective rate will be higher than the stated rate. For example, a 12% nominal rate with monthly compounding has an effective annual rate of 12.68%. The effective rate is a more accurate measure of the true return than the nominal rate. It’s also a powerful indicator of just how miraculous compounding is and why EVERYONE should be making the most of it with their investments