Free investment calculator

Compound interest calculator

Estimate how an initial amount can grow when interest is repeatedly added to the balance and begins earning interest itself.

Growth assumptions

Enter your starting values

Initial amount (GEL)

Annual rate%Time periodyears

Compounding frequency

Year-by-year growth

See the estimated balance and accumulated interest at the end of each year.

Year	Balance	Interest earned
Year 1	GEL 10,830.00	GEL 830.00
Year 2	GEL 11,728.88	GEL 1,728.88
Year 3	GEL 12,702.37	GEL 2,702.37
Year 4	GEL 13,756.66	GEL 3,756.66
Year 5	GEL 14,898.46	GEL 4,898.46
Year 6	GEL 16,135.02	GEL 6,135.02
Year 7	GEL 17,474.22	GEL 7,474.22
Year 8	GEL 18,924.57	GEL 8,924.57
Year 9	GEL 20,495.30	GEL 10,495.30
Year 10	GEL 22,196.40	GEL 12,196.40

How compound interest works

Compound interest means you earn interest not only on the money you put in, but also on the interest that has already been added. Every time interest is credited, your balance gets a little bigger, so the next interest payment is calculated on a larger amount. Over short periods the difference from simple interest is small; over five, ten or twenty years it becomes the main source of growth.

The calculator takes four inputs: the starting amount, the annual interest rate, how often interest is compounded and the number of years. It splits the annual rate into equal periodic rates (for example, 8% a year compounded monthly becomes 8% ÷ 12 per month) and applies it as many times as there are compounding periods. The yearly table shows your balance and the total interest earned at the end of each year, so you can see how growth speeds up over time.

The result assumes the rate stays the same for the whole period and that you do not withdraw or add money. Real deposits and investments rarely behave that neatly, so treat the figure as a planning estimate rather than a promise.

Formula

A = P × (1 + r ÷ n)^(n × t)

A is the final balance, P the starting amount, r the annual rate as a decimal (8% = 0.08), n the number of compounding periods per year (12 for monthly) and t the number of years. Interest earned is A − P.

Example: a 10,000 GEL deposit over 10 years

Say you place 10,000 GEL at an 8% annual rate with monthly compounding and leave it for 10 years. Here is what the calculator does step by step:

Monthly rate: 8% ÷ 12 = 0.667% per month.
Number of periods: 12 months × 10 years = 120 compounding periods.
Final balance: 10,000 × (1 + 0.08 ÷ 12)^120 ≈ 22,196.40 GEL.
Interest earned: 22,196.40 − 10,000 ≈ 12,196.40 GEL.
With annual compounding at the same rate the balance would be about 21,589.25 GEL, so monthly compounding adds roughly 607 GEL over the decade.

After five years the same deposit is worth about 14,898 GEL; after ten it is worth more than twice the original. Most of the growth happens in the second half, which is why starting early matters more than chasing a slightly higher rate.

How to read the result

Compare offers on the same basis. A bank's advertised annual rate and its effective annual rate can differ because of compounding frequency; enter each offer here with its own frequency to compare the real outcome.
Think in real terms. If prices rise while your money compounds, part of the growth only keeps up with inflation. Run the same amount through the inflation calculator to see what the final balance is worth in today's lari.
Check what you actually receive. Fees, taxes on interest and early-withdrawal penalties reduce the effective return; confirm the terms with your bank before you commit.
Mind the currency. A higher rate on a USD or EUR deposit is not automatically better for someone who spends in GEL, because exchange-rate moves can add to or wipe out the extra interest.
Use the yearly table to set milestones. Knowing where the balance should be after three or five years makes it easier to notice when a deposit or portfolio is falling behind.

Frequently asked questions about compound interest

Simple interest is paid only on the original amount, so it grows by the same sum every year. Compound interest is also paid on interest already earned, so each year's growth is larger than the last. On 10,000 GEL at 8% for 10 years, simple interest gives 18,000 GEL, while monthly compounding gives about 22,196 GEL.

It matters, but less than the rate and the time. More frequent compounding gives a slightly higher result: in the example above, monthly compounding earns about 607 GEL more than annual compounding over 10 years, while daily compounding adds only about 57 GEL more than monthly.

Yes. Enter the deposit amount, the annual rate from the bank's offer and how often interest is capitalised (added to the balance). If interest is paid out to you instead of being added, the deposit does not compound, and simple interest is the better estimate.

No. It shows the gross growth from the rate you enter. Reduce the rate to reflect any tax or fees on interest, and use the inflation calculator to see what the result is worth in today's money.

A quick rule of thumb is to divide 72 by the annual rate: at 8% money roughly doubles in 9 years. The calculator gives the exact figure for your rate and compounding frequency; at 8% compounded monthly, 10,000 GEL passes 20,000 GEL during the ninth year.

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