Free tool
Compound interest calculator
What this tool tells you
This tool shows what a starting amount and a monthly deposit grow to after a number of years, at an assumed annual return you choose. It also separates what you put in from what growth added, so you can see how much of the final amount came from compounding.
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The calculation runs in your browser, and the numbers you enter are not sent anywhere.
How it is calculated
The balance is calculated month by month. The starting amount grows at the monthly rate equivalent to the annual return, and each monthly deposit lands at the end of the month and keeps growing from there. "What you put in" is the starting amount plus every deposit, and "what growth added" is the difference between the final balance and that sum.
r = (1 + rate / 100)^(1/12) − 1
balance = start × (1 + r)^n + deposit × ((1 + r)^n − 1) / r
growth = balance − (start + deposit × n)
n is the number of months (years × 12) and rate is the assumed annual return in percent. At a return of 0% the balance is simply start + deposit × n.
Assumptions
- The monthly deposit is constant and lands at the end of each month.
- The return is constant for the whole period, and it is net: if there are management fees, subtract them from the return you enter.
- There is no tax, inflation or other charge, so the final amount is a nominal value, not today's purchasing power.
- Ranges in the tool: a starting amount of 0 to 500,000 shekels, a deposit of 100 to 10,000 shekels, 1 to 40 years and a return of 0% to 12%.
How to read the result
- The large card is the balance at the end. The other two break it into deposits and growth.
- The coloured bar shows what share of the final amount came from growth. The longer the period, the bigger that share.
- Drag across the chart to see the values year by year: as the years pass, the distance between the curve and the deposits line grows.
- Set the return to 0% to see what deposits alone would have accumulated.
Limits of this tool
Real returns vary from period to period and are not guaranteed, and the tool assumes a constant return. For long-term planning, remember too that the final amount is not adjusted for inflation.
This is an illustration based on the numbers you entered, not personal advice or a recommendation. Check current rules and amounts at gov.il or on the Capital Market, Insurance and Savings Authority website.
Frequently asked questions
What is compound interest?
Interest that is earned on growth that has already accumulated. Each period the growth is added to the balance, and the next period's growth is calculated on the updated amount. That is why the curve bends upward instead of rising in a straight line.
What return should I enter?
There is no single answer, and no one can know a return in advance. The tool is meant for comparing scenarios: try several values and see the difference. It does not suggest an expected rate.
Do deposits land at the start or the end of the month?
At the end of each month. The starting amount grows for the whole period, and each deposit starts growing the month after it is made.
Does the calculation include tax or management fees?
No. If your savings carry management fees, subtract them from the return you enter, or use the management fee calculator. Tax is not part of the tool.
Read more in the guides
Guides
Everything You Wanted to Know About Kupat Gemel for Investment
A comprehensive guide to Kupat Gemel for Investment – a savings channel that works for both the short term and retirement.
Guides
Management Fees: How a Small Percentage Eats a Big Part of Your Savings
Why a one-point fee gap turns into years of savings, where fees hide in pension and study funds, and which questions to ask your fund manager.
Related tools
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Compares two management fee rates and shows how much is left in the fund at the end.
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