Principal & Contributions
Initial Investment
R
Monthly Contribution
R
Annual Interest Rate
%
Time & Frequency
Investment Period
yrs
Compound Frequency
Contribution Timing
Final Balance
—
Total Contributed
—
Interest Earned
—
Growth Over Time
Total Balance
Amount Contributed
Year-by-Year Breakdown
| Year | Contributed | Interest Earned | Balance |
|---|
How does compound interest work?
Compound interest means you earn interest not just on your initial deposit, but also on all the interest you've already accumulated. Over time this creates exponential growth — the longer you stay invested, the more powerful the effect.
A = P(1 + r/n)^(nt) + contributions compounded over each period
Where P is your initial principal, r is the annual interest rate, n is the number of compounding periods per year, and t is time in years.
South African savings accounts and money market funds typically offer rates between 8% and 11% per year. Fixed deposits and unit trusts may offer higher rates depending on term and risk profile.