Compound interest calculator
A snowball grows as it rolls. See how your monthly saving grows year by year, and what it is worth in today’s money.
Results are a scenario based on the assumptions you enter, not a certain result or investment advice. The calculation runs in your browser; your numbers are not sent anywhere.
| Year | Total put in | Savings | In today’s money |
|---|---|---|---|
| 1 | ₺220,000 | ₺273,209 | ₺210,160 |
| 2 | ₺340,000 | ₺507,040 | ₺300,024 |
| 3 | ₺460,000 | ₺822,712 | ₺374,471 |
| 4 | ₺580,000 | ₺1,248,870 | ₺437,264 |
| 5 | ₺700,000 | ₺1,824,183 | ₺491,306 |
How is it calculated?
The yearly return is turned into its equivalent monthly rate: 35% a year is about 2.53% a month, which compounds to exactly 35% over 12 months. Your savings grow at that rate every month, and your monthly saving is added at month end.
The return is your total savings minus what you put in. That’s where compounding gets its power: every month, past months’ returns earn a return too.
The “in today’s money” figure brings the result back to today with the yearly inflation assumption. If the return is below inflation, the amount grows while its purchasing power shrinks.
Taxes, withholding and fees are left out; real returns depend on the investment and the period.
Frequently asked questions
What is compound interest?
It is earning a return on your returns. With simple interest only the principal earns; with compounding, each period’s gain is added to the principal and earns in the next period too. The longer the period, the bigger the difference.
What is the difference between nominal and real return?
Nominal return is how many lira the amount grew. Real return is how much your purchasing power grew after inflation. A 40% nominal return with 35% inflation is about a 3.7% real return.
What return should I enter?
Enter the expected return of where you keep your savings, but don’t rely on one rate. Try optimistic, base and pessimistic rates and look at the gap.
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