A worked example
A $5,000 deposit at 6%, compounded annually for 10 years, grows to roughly $8,954 — nearly double, from compounding alone.
Frequently asked questions
How is this different from the Compound Interest Calculator?
This is a single lump sum with no further deposits — the simplest possible compounding case. The Compound Interest Calculator adds ongoing monthly contributions on top, which most real savings plans actually involve.
Why does the same rate produce such a different result over longer periods?
Compounding is exponential, not linear — doubling the number of years more than doubles the growth, since each year's growth is now calculated on a larger balance than the year before.
This calculator provides estimates for general informational purposes only and is not financial advice. Actual investment returns are not guaranteed.