Free Compound Interest Calculator
Use our advanced compound interest calculator to see how your investments can grow over time. Adjust the parameters to find the perfect investment strategy for your goals.
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Provide your age, income, and current super balance.
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Include any voluntary contributions you plan to make.
See Your Future
Instantly get a detailed projection and visual breakdown.
Compound Interest Calculator
Project your investment growth
Advanced Options
RBA target: 2-3% p.a.
Super: 15% | Personal: varies
Compound Interest Calculator Australia
Calculate how your money grows with compound interest. This calculator helps Australian investors understand:
The Compound Interest Formula
A = P(1 + r/n)^(nt)
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Compounding frequency per year
- t = Time in years
Historical Average Returns (Australia)
- Australian Shares (ASX 200): 9.8% p.a. (30-year average)
- International Shares: 10.2% p.a. (hedged)
- Australian Bonds: 6.2% p.a.
- Term Deposits: 4-5% p.a. (current rates)
- High Interest Savings: 4.5-5.5% p.a. (bonus rates)
The Rule of 72
A quick way to estimate how long it takes to double your money: 72 ÷ interest rate = years to double. At 7% return, money doubles approximately every 10.3 years.
Compounding Frequency Impact
More frequent compounding leads to higher returns. For a $10,000 investment at 7% over 10 years:
- Annual compounding: $19,672
- Monthly compounding: $20,097
- Daily compounding: $20,138
Tax Considerations
- Investment earnings in super: taxed at 15%
- Personal investment earnings: taxed at your marginal rate
- CGT discount: 50% for assets held 12+ months
Future Value after 10 years
$85,000
↑ $75,000 total growth
If you started 5 years earlier
+$45,000
If rate was +1% higher
+$8,500
Growth Projection
💡 The Rule of 72
At 7% annual return, your money doubles every 10.3 years. This simple rule helps estimate compound growth: 72 ÷ interest rate = years to double.
Investment Composition
Yearly Breakdown
| Year | Contributions | Interest | Balance |
|---|
Scenario Comparison
See how different strategies affect your final balance.
Compounding Frequency Comparison
| Frequency | Final Value | Difference |
|---|
📊 Historical Returns (Australia)
- ASX 200 (30-yr avg): 9.8% p.a.
- Balanced Super Fund: 7-8% p.a.
- Term Deposits: 4-5% p.a.
- High Interest Savings: 4.5-5.5% p.a.
AI Investment Insights
Personalized Recommendations
Interest Breakdown
These insights are for educational purposes. Consult a financial adviser for personal advice.
Investment Milestones
Track your progress toward key financial goals.
When Will You Reach...
| Target | Years | Date |
|---|
🎯 ASFA Retirement Standards
For a comfortable retirement at 67, ASFA recommends:
- Single: $595,000
- Couple: $690,000
Disclaimer: This calculator provides estimates only and does not constitute financial advice. Past performance is not indicative of future returns. Consult a licensed financial adviser for personal advice.
What is Compound Interest?
Formula
A = P(1 + r/n)^(nt)
Where A = final amount, P = principal, r = annual interest rate, n = compounding frequency, t = time in years
Exponential Growth
Your money grows faster over time as interest earns interest, creating a powerful snowball effect that accelerates wealth accumulation.
Regular Contributions
Small, consistent monthly contributions can dramatically boost your final investment value through the power of dollar-cost averaging.
Time Advantage
Starting early gives you the greatest advantage in building wealth. Time is your most valuable asset in the compound interest equation.
Master the Art of Investing
Learn the fundamental principles of compound interest and how to apply them to build lasting wealth over time.
The Power of Compounding
Albert Einstein reportedly called compound interest 'the eighth wonder of the world.' Your money earns money, which then earns more money.
Time is Your Best Friend
The earlier you start, the less you need to save monthly to reach your goals. A 25-year-old needs to save less than half of what a 35-year-old needs for the same retirement goal.
Dollar-Cost Averaging
Regular contributions help smooth out market volatility. You buy more shares when prices are low and fewer when prices are high.
Set Clear Goals
Having specific financial goals helps you stay motivated and make informed decisions about how much to save and invest.
Proven Strategies for Long-term Success
Follow these time-tested strategies to maximize your investment returns and build substantial wealth over time.
Start Early
The power of time in compound interest cannot be overstated. Starting your investment journey early gives you the greatest advantage.
- Begin investing in your 20s for maximum compound growth
- Even $50/month can grow to substantial amounts over decades
- Time is more valuable than large initial investments
Consistent Contributions
Regular monthly contributions can dramatically increase your final investment value through dollar-cost averaging.
- Set up automatic monthly transfers
- Increase contributions with salary raises
- Stay consistent even during market downturns
Optimize Interest Rates
Small differences in interest rates
- Research and compare investment options
- Consider diversified portfolios for better long-term returns
- Rebalance periodically to maintain target allocation
Avoid Early Withdrawals
Let your investments compound undisturbed. Early withdrawals eliminate future compound growth potential.
- Build an emergency fund separately
- Understand withdrawal penalties and tax implications
- Stay focused on long-term goals
Professional Financial Advice
Learn from financial experts and discover practical tips to optimize your investment strategy and avoid common mistakes.
The Rule of 72
Divide 72 by your annual interest rate to estimate how many years it will take for your investment to double. At 8% interest, your money doubles every 9 years.
Inflation Protection
Consider inflation when planning. A 7% return with 3% inflation gives you about 4% real purchasing power growth.
Diversification Strategy
Don't put all your eggs in one basket. Diversify across different asset classes to manage risk while maintaining growth potential.
See the Impact of Starting Early
Compare different investment scenarios and see how starting age and contribution amounts affect your final results.
The College Graduate
Starting early with modest contributions
$1.2M
| Starting Age | 22 years old |
| Initial Amount | $1,000 |
| Monthly Contribution | $200 |
| Investment Period | 43 years |
Assumes 7% annual return, compounded monthly
The Career Switcher
Mid-career financial planning
$1.1M
| Starting Age | 30 years old |
| Initial Amount | $5,000 |
| Monthly Contribution | $400 |
| Investment Period | 35 years |
Assumes 7% annual return, compounded monthly
The Late Starter
Accelerated savings for retirement
$950K
| Starting Age | 40 years old |
| Initial Amount | $15,000 |
| Monthly Contribution | $800 |
| Investment Period | 25 years |
Assumes 7% annual return, compounded monthly
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About this calculator
Always consult with a qualified financial advisor before making significant investment decisions. Past performance doesn’t guarantee future results.