Interactive infographic
How Compound Interest Grows Your Money
Move the sliders to see how starting amount, monthly savings, interest rate and time turn small savings into big numbers.
What this infographic shows
Compound interest is interest earned on your interest. Each month your balance grows by a small percentage. Next month that percentage is taken from a slightly bigger number, so the growth gets faster every year.
The chart splits every year into two parts:
- Purple: money you put in yourself.
- Orange: interest, which is money you never deposited.
In the early years the orange part is tiny. After a couple of decades it is often bigger than everything you saved. That curve is why people say “start early”.
How to use it
- Set the starting amount you have today.
- Set how much you can add every month.
- Pick a yearly interest rate. Savings accounts are usually lower; long-term stock market averages are usually higher and not guaranteed.
- Move the years slider and watch the orange part grow.
This is an educational illustration, not financial advice. Real returns vary and can be negative.
Frequently asked questions
What is compound interest in simple words?
It is interest calculated on your original money plus all the interest you have already earned, so your balance grows faster every year.
How is compound interest different from simple interest?
Simple interest is paid only on the original amount. Compound interest is paid on the original amount plus past interest, so the growth speeds up over time.
How often is interest compounded in this infographic?
Monthly. Each month the balance earns one-twelfth of the yearly rate, then that month's savings are added.
Sources
Text version of this infographic
How compound interest grows your money
Move the sliders. Orange is money you never put in — it's interest earning interest.
Starting amount
Added every month
Yearly interest rate
Years
You put in
Interest earned
Final balance
Year 1
Money you put in
Interest earned
Hover or tap a bar to see that year.