# Calculate & compare compound interest

The interest calculator helps illustrate how much money will be made with the power of compound interest.

Compare the differences over time with multiple interest rates at once.

## How Compound Interest Works

Compound interest is the process of earning interest on an amount of money cumulatively over time. Interest is calculated as a percentage of the current amount including accumulated interest payments meaning that once you receive a payment of interest, you will earn more on the next interest payment.

It is this compounding that Albert Einstein famously called "the 8th wonder of the world". Once you can utilise it in your personal savings and make your money work for you, you will see why!

## How is compound interest calculated?

Compound interest can be calculated manually year by year or by using a formula. Visit the about page to see how the calculation is made or simply use the calculator above.

## Which compound interest rate is better?

You may find different interest rates quoted in different ways and with varying compound intervals. The main figure to look for is the APR (annual percentage rate) which shows the actual rate of interest paid over a period of 1 year. Using this as a benchmark to compare various rates will help simplify the comparison process and ensure you find the best rate for you.