Compound interest calculator – Use the Atomic Home Loans compound interest calculator to calculate the interest and growth on your savings. According to Albert Einstein, compound interest is the eighth wonder of the world. It’s vital that you understand compound interest and its effect on you, both as a borrower and investor.
This compound interest calculator will allow you to figure out how much your initial deposit will be worth over a certain period of time.
You can adjust the deposit amount, the savings terms, along with the interest rate.
You will likely notice that the longer the term, the greater the growth. Equally, the higher the interest rate the greater the growth.
Conversely, the shorter the savings terms and savings interest rate, the lower the growth.
This calculator, in conjunction with our savings calculator, will allow you to truly visualize how influential compound interest can be to your bottom line net worth.
In addition, it is worth noting that the frequency which interest is charged also has a tremendous impact on the over growth.
For example, if interest is accrued and paid daily, your growth is a lot higher than if it were accrued and paid monthly or worse yet, annually.
The interest on your home loan is almost always accrued daily and paid in arrears monthly. This compound interest calculator will allow you to see the difference in overall numbers by compounding daily, monthly or annually.
This Compound interest calculator was developed by the Mortgage and Finance Association of Australia (MFAA). You can visit their website and get an idea of the services they provide by clicking here.
If you require more assistance or would like a more detailed explanation on how the compound effect works either for you or against you, contact a Home Loan Expert from Atomic Home Loans by calling (02) 9188 8834 or by leaving us a message on our contact us page so one of our experts can get in touch with you.See All Calculators