Compound Interest Calculator
As a result of the savings calculator, you get the total amount and the return on your investment. You can give a different amount for the first deposit and for subsequent deposits. If the amount is always the same, enter the same values in the fields. If you wish, you can also donate only the first savings amount.
Compound Interest
In the above calculator, the final amount can be very large. This is due to the effect of compound interest.
Let's assume that the annual interest rate is 5% and you only make an initial investment of €1000. You don't make more investments. After the first year, you get €50 in interest. The amount saved increases to €1050. The following year the interest will not be paid on €1000, but on €1050. Interest is paid on the accumulated interest. The annual interest is now €52.50. The amount saved will be €1102.50.
If the savings period is 20 years, the final amount will be €2,653.30. So you have received a return of €1,653.30 for your €1,000 investment.
The above is an example of compound interest calculation. Interest can also be calculated simply. In this method, no interest is calculated on previously accrued interest. In this way, only €50 in interest is accrued annually. In such a case of simple interest, an investment of €1000 over 20 years at 5% interest would produce €50 each year, that is, a total of €1000, and the final amount would be €2000.