Compound Interest Calculator
Start with the simple idea: £100 at 10% interest. Each year, the interest is added, then the next year’s interest is calculated on the new total.
Simple example
Imagine you start with £100 and earn 10% interest per year.
Year 1
£100 × 1.10 = £110
Year 2
£110 × 1.10 = £121
Shortcut formula
Final amount = starting amount × multiplieryears
£100 × 1.105 = £161.05
£100 at 10% for 5 years
Year 0£100.00
Year 1£110.00
Year 2£121.00
Year 3£133.10
Year 4£146.41
Year 5£161.05
Try it
Shortcut formula
Final amount = starting amount × multiplieryears
£100 × 1.10⁵ = £161.05
£161.05
That means £61.05 interest has been earned.