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Compound Interest Calculator

Watch your money snowball

Use this simple calculator to see how your savings and investments can grow over time with the power of compound interest.

Our compound interest calculator is designed to help you visualise how your savings or investments could grow over time, whether you contribute regularly or not. By showing how compound interest amplifies returns, our tool can demonstrate how even small investments now can influence your financial future. Curious about making the most of your returns?

Scroll down to explore how compound interest works and how to make the most of it. You can even experiment with different contribution scenarios to see how much you stand to gain. Start planning today!

How to leverage compound interest for growth

Start Early

The sooner you start, the longer your money has to grow. Even small amounts invested early can grow significantly over time due to compounding.

Make Regular Contributions

Consistently adding to your investments boosts the compounding effect. Each new contribution generates its own interest, enhancing overall growth.

Reinvest Earnings

Reinvest any interest, dividends, or earnings to allow them to compound and further accelerate growth.

Automate Investments

Automating your contributions ensures regularity, keeping your money growing steadily without effort on your part.

How compound interest could work for you

Let's say you invest $10,000 USD at a fixed 5% yearly interest rate, compounded yearly, and with a monthly contribution of $100 USD for 20 years.

Your money will grow to $66,212.12 USD. This means a total interest of $32,212.12 USD and a return on investment of 94%.

Please note that these calculations use a fixed annual interest rate for illustration. Actual investment returns can vary due to:

Market fluctuations
Changing interest rates
Inflation
Economic conditions

If you’re investing rather than saving at a fixed rate, your actual returns may differ from the example.

A graph showing the affect of 5% compound interest on $10,000 SGD with $100 SGD monthly contributions broken down to initial contribution, new contributions, and interest earned

Top investment options to leverage compound interest

Compound interest is often hailed as the "eighth wonder of the world" for its ability to grow wealth over time significantly. Whether you’re new to investing or a seasoned investor, understanding where to invest for compound interest is crucial to building long-term financial success. But how do you choose the right vehicle to make the most of compounding? Here are some of the top choices:

Mutual Funds and ETFs

Mutual funds and exchange-traded funds (ETFs) pool money from many investors to buy diversified baskets of stocks, bonds, or other assets. They often distribute dividends, which investors can reinvest.

Benefits for compounding:

Dividend reinvestment boosts long-term growth
Broad diversification supports more stable compounding

Money Market Funds (MMFs)

MMFs invest in short-term, high-quality instruments like treasury bills and commercial paper. They offer low risk and steady interest—ideal for conservative investors.

Benefits for compounding:

Diversified exposure across markets
Dividend reinvestment accelerates compounding

Fixed Deposits

Fixed deposits lock in your money for a set term at a guaranteed rate, offering safe and predictable returns with minimal risk.

Benefits for compounding:

Guaranteed interest makes long-term projections reliable
Suitable for low-risk savers building steady returns

Robo-Advisors

Robo-advisors, such as StashAway, take the guesswork out of investing by offering intelligent, globally diversified portfolios that are managed for optimal performance.

Benefits for compounding:

Long-term growth optimised through professional, automated management
Staying consistently invested maximises the compounding effect

Dividend Stocks

Dividend-paying stocks distribute a portion of company profits to shareholders. When reinvested, these dividends help grow your holdings over time.

Benefits for compounding:

Dividend reinvestment increases total shareholdings
Enhances both income and long-term capital appreciation

Our investment solutions

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Explore ultra-low-risk cash management portfolios tailored to maximise your cash growth with flexibility.

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Frequently Asked Questions

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