Compound Interest Calculator - Calculate interest with monthly savings rate

Using the Compound Interest Calculator

Why did I develop the Compound Interest Calculator? The compound interest effect is an important helper when it comes to long-term wealth accumulation. This is known to many people. What is less known is the actual strength of this muscle over long periods of time. The compound interest calculator makes it clear with just a few entries how strong the compound interest effect actually is.

In order to be able to fully benefit from compound interest patience and discipline of crucial importance. After all, the effect only works if received interest or dividends are not withdrawn. If you take the interest, only the simple interest effect works.

The compound interest calculator: how it works

The compound interest calculator is kept simple and gets by with just a few details. For this reason, the following assumptions were made when creating the calculator:

  • Subsequent interest, ie interest is only paid on the paid-in capital at the end of the month.
  • Monthly Interest: Interest is calculated every month.

If other calculation methods are desired: Write a comment!

Zinsrechner:Zineseszinseffekt ĂĽber 30 Jahre
The power of compound interest: $1,000 and $1,500 earn four, five, and six percent interest over 30 years. The vertical axis shows the resulting assets in thousands of euros. Starting capital €10,000

input from seed capital in the compound interest calculator

How much money do you already have available today? You enter the value in the field seed capital a. You haven't saved any seed capital yet? No problem. Enter a 0 in the field.

input from monthly savings rate in the compound interest calculator

If you're just starting out investing, your monthly savings rate (rough rule of thumb) should be at least 10 % of your net income.

The monthly savings rate is an effective way to increase your invested capital by x euros every month. Contrary to popular belief, even small amounts over a period of, say, 30 years and 5 % interest can have a big effect. Try it out!

A long period of time is particularly important for the compound interest effect. This is the only way it can come into its own.

Default one annual interest rate in the compound interest calculator

Since the interest rate for investments in shares and ETFs is not known in advance, assumptions have to be made here. However, delivered the DAX since 1987 has had a historical average return of over 7 %.

Play around with the interest rate. You will quickly find that it is the most powerful adjusting screw. Over a period of 30 years, the compound interest effect has such a strong effect that it can hardly be offset by a higher monthly savings rate.

Entering the Saving duration in years

How many years should the capital work for you? Enter it here! With short periods of ten years and less, you will find that your capital is largely made up of your own deposits. This changes drastically the longer the investment horizon becomes. Over 30 years, interest payments make up the majority of the money. So your invested capital with 5 % interest and 30 years term is only 43 % of the final capital.

I hope the compound interest calculator will help you. You have an addition, want another computer, or have discovered an error? Leave a comment!

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Compound Interest Calculator
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Compound Interest Calculator
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Calculate the compound interest effect with monthly savings online. Only a few details. Without registration. With the compound interest calculator you can easily calculate interest. You can also enter monthly savings rates.
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