Savings Interest Calculator
Instantly calculate how much your savings will grow over time using the power of compound interest, initial deposits, and regular monthly contributions.
Calculate Future Growth
Enter your initial deposit, monthly contribution, interest rate, and time period below to instantly see your projected savings balance and total interest earned.
Compound Interest Calculator
Project your savings growth with precise, easy-to-read results.
Understanding Compound Interest
Key concepts to maximise your savings growth
The Power of Compounding
Compound interest means you earn interest not just on your initial deposit, but also on the interest that has already been added to your account. This creates an accelerating growth curve over time.
Time is Your Greatest Asset
The longer your money remains invested, the more powerful the compounding effect becomes. Starting to save early, even with smaller amounts, often yields better results than starting late with larger amounts.
Impact of Regular Contributions
Adding a fixed amount every month significantly boosts your final balance. Each contribution immediately begins earning its own compound interest, accelerating your path to financial goals.
Compounding Frequency
Interest can be compounded daily, monthly, or annually. More frequent compounding (like daily or monthly) results in slightly higher overall returns compared to annual compounding.
Growth of £1,000
Estimated future value of a £1,000 initial deposit with no additional contributions, compounded monthly over time.
| Time Period | At 2% APY | At 4% APY | At 5% APY | |
|---|---|---|---|---|
| 5 Years | £1,105 | £1,221 | £1,283 | |
| 10 Years | £1,221 | £1,491 | £1,647 | |
| 20 Years | £1,488 | £2,223 | £2,714 | |
| 30 Years | £1,821 | £3,314 | £4,468 |
Savings FAQ
Answers to the most frequently asked questions about compound interest, savings accounts, and financial planning.
Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. This means your money grows exponentially over time, as you earn ‘interest on interest’.
Simple interest is calculated only on the principal amount of a loan or deposit. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, leading to significantly faster growth over time.
In the UK, interest on savings accounts is most commonly compounded and paid either monthly or annually. Some accounts may compound daily but pay out monthly or annually. Always check the specific terms and conditions of your chosen savings account.
This calculator provides a highly accurate estimate based on standard compound interest formulas. However, actual bank figures may vary slightly due to exact compounding dates, leap years, account fees, or changes in variable interest rates.
A ‘good’ rate depends on the current Bank of England Base Rate and the type of account (e.g., easy access vs. fixed-term bond). Generally, you should aim for an account that offers a rate at or above the current rate of inflation to ensure your money retains its purchasing power.