Savings & Compound Interest Calculator
See how regular monthly deposits could grow over time with compound interest.
Year by year
| Year | Total deposited | Interest earned | Balance |
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How compound interest works
With compound interest, you earn interest on your original money and also on the interest you have already earned. Over a few months the difference is small, but over many years it becomes large. That is why starting early matters more than starting big.
This calculator assumes interest is added every month and that your monthly deposit is made at the end of each month. It uses a fixed rate for the whole period. A quick rule of thumb is the Rule of 72: divide 72 by the yearly rate to estimate how many years it takes for money to double. At 4% per year, that is about 18 years.
The result does not include tax, fees or inflation, so the real buying power of your balance will be lower than the figure shown. Savings accounts, fixed deposits and investment funds all work differently, and some rates are not guaranteed. Use this tool to compare scenarios, for example what happens if you save RM100 more each month.
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the original amount. Compound interest is calculated on the original amount plus the interest already earned, so the balance grows faster over time.
Why does starting early make such a difference?
Interest earns more interest, so each year of extra time adds more than the year before. Someone who saves a smaller amount for longer can end up with more than someone who starts late with a bigger amount.
Is the interest rate guaranteed?
It depends on the product. A fixed deposit usually has a rate fixed for the term. Other products, such as investment funds, can pay different returns each year. Check the terms of the product you are considering.
Does this include inflation or tax?
No. Prices usually rise over time, so the same amount of money buys less in the future. Tax and fees can also reduce your return.
How much should I save each month?
There is no single answer. Try different monthly amounts in the calculator and see what fits your goal and your budget. Even small regular amounts add up over time.