Compound Interest Calculator
Albert Einstein supposedly called compound interest the eighth wonder of the world. Whether he said it or not, the maths is undeniable — and it is the single most important concept for building wealth in South Africa.
What compound interest actually is
Simple interest pays you on your original money only. Compound interest pays you on your original money plus all the interest you have already earned. Over time, your money earns money, and that money earns money too — growth accelerates.
The power of time
| Monthly | Years | At 10% becomes |
|---|---|---|
| R1,000 | 10 | ~R205,000 |
| R1,000 | 20 | ~R765,000 |
| R1,000 | 30 | ~R2.26m |
| R3,000 | 30 | ~R6.78m |
Try it with your own numbers:
See your money grow →Why starting early beats saving more
Someone who saves R2,000/month from age 25 to 35 then stops often ends up with more at 65 than someone who saves R2,000/month from 35 to 65 — despite saving for a third of the time. That is compounding rewarding the early starter.
Make compounding work for you
- Start now, even with a small amount
- Reinvest all growth — do not withdraw it
- Use a tax-free savings account so growth compounds untaxed
- Keep costs low — high fees eat compounding
Play with the numbers in our compound interest calculator and set a target with the savings goal calculator.