How it works
Future value = principal × (1 + annual rate ÷ 12)^(12 × years).
A worked example
1,000 at 5% nominal annual interest, compounded monthly for 10 years, grows to about 1,647.01.
What to keep in mind
Assumes monthly compounding and a constant nominal rate. Excludes tax, inflation and fees; growth is not guaranteed.
A common question
How often is interest compounded?
Monthly. Enter a nominal annual rate, not an effective annual yield or AER.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.