Monu Tools

Compound Interest Calculator

Project how savings or an ETF plan grow with compound interest. Set a starting amount, monthly contribution, return and duration, and watch the balance grow year by year.

How to use the Compound Interest

  1. 01

    Enter your starting amount, monthly contribution, expected return and number of years.

  2. 02

    See the final balance split into what you invested and the interest earned.

  3. 03

    Use the chart to watch the balance grow year by year.

How it works

This compound interest calculator shows how a one-off starting amount plus regular monthly contributions can grow over time at a constant annual return. It separates the total you put in from the interest earned, so the effect of compounding is easy to see.

Contributions are added at the start of each month and the balance is compounded monthly, which matches how most savings and ETF plans actually work, and a year-by-year chart shows the balance climbing.

What compound interest is

Compound interest is interest on your interest. Each period, the return is calculated on your contributions plus all the gains so far, so the balance grows faster and faster. Over long horizons this compounding, not the contributions, drives most of the final amount.

The rule of 72

A rough mental check is the rule of 72: dividing 72 by the annual return gives the years for money to double. At 7 percent, that is about ten years, which is why starting early matters so much.

Returns are assumptions

Returns are assumptions, not guarantees. A broad global stock ETF has historically averaged roughly 6 to 8 percent per year before inflation over long periods, but any given stretch can be very different, including negative.

A gross estimate

The projection is before taxes, fees and inflation, so treat the result as a gross estimate and leave a margin for those. Everything is calculated in your browser.

Frequently asked questions

What is compound interest?

Compound interest is interest earned on both your contributions and previously earned interest. Over long periods this compounding drives most of the growth.

How are contributions handled?

Contributions are added at the start of each month and the balance is compounded monthly, which matches how many savings plans and ETF savings plans work.

What return should I assume for an ETF?

Returns are never guaranteed. A broad global stock ETF has historically averaged roughly 6 to 8 percent per year before inflation over long horizons, but any given period can differ a lot.

Does it account for taxes or inflation?

No. The projection is before taxes, fees and inflation. Treat the result as a gross estimate and plan a margin for those factors.

What is the rule of 72?

A quick estimate: divide 72 by the annual return to get the years for your money to double. At 6 percent that is about 12 years, at 8 percent about 9.

This tool is for general information only and is not financial, tax, or legal advice. Results are estimates that depend on your situation and current rules, so check the official source or a qualified professional before you act.

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