| Year | You put in | Balance |
|---|---|---|
| 1 | 220,000 | 227,905 |
| 2 | 340,000 | 362,353 |
| 3 | 460,000 | 503,681 |
| 4 | 580,000 | 652,238 |
| 5 | 700,000 | 808,397 |
| 6 | 820,000 | 972,544 |
| 7 | 940,000 | 1,145,090 |
| 8 | 1,060,000 | 1,326,464 |
| 9 | 1,180,000 | 1,517,117 |
| 10 | 1,300,000 | 1,717,524 |
The inputs come pre-filled with neutral sample values, so the result and chart appear straight away. Replace them with your own figures. The result updates next to the inputs as you type.
What the calculator shows
This compound interest calculator projects how a balance grows when interest is added to it and then earns interest itself. For each set of inputs, the tool returns:
- Future value: the projected balance at the end of the period.
- Total contributions: the starting amount plus all regular additions.
- Interest earned: the future value minus your contributions.
- Inflation-adjusted value (optional): the future value in today's purchasing power.
- Growth chart: contributions and interest over time, so you can see when interest starts to make up a larger share of the balance.
Ready to try it on a real or demo account?
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Inputs explained
| Input | What it means |
|---|---|
| Starting amount (P) | The money you start with, the principal. |
| Annual rate (r) | The nominal yearly interest or return rate. |
| Compounding frequency (n) | How often interest is added in a year, for example monthly, quarterly or yearly. |
| Period (t) | How many years the money stays invested. |
| Regular addition (PMT) | The amount you add each period. |
| Inflation rate | Optional. Used to show the result in today's money. |
Compounding frequency matters because interest added more often starts earning interest sooner. With the same nominal rate, more frequent compounding gives a slightly higher result. To see how much it changes your numbers, switch the frequency in the tool and compare the future values.
The formula
The calculator uses the standard future value formula, shown in full under the tool:
FV = P(1 + r/n)^(nt) + future value of the PMT series
- The first part grows the starting amount P. The rate per period is r/n, and there are n×t periods in total.
- The second part adds up the regular additions. Each PMT grows for the periods left until the end, and the tool sums all of them.
The tool also states whether additions are made at the start or the end of each period. Additions at the start earn interest for one extra period, so the result is a little higher.
To adjust for inflation, the tool divides the future value by the growth of prices over the same period. This gives the real value of the balance. For the reverse question, use the inflation calculator or the real return calculator.
How to read the result
Run the tool with your own figures and look at the chart. In the early years, contributions make up most of the balance. Over a longer period, the interest share grows. This is why the period and the rate change the result more than most people expect.
Some points to keep in mind:
- The calculator assumes a constant rate for the whole period. Real savings rates in Pakistan change with the SBP policy rate. The latest decision on record is SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). See SBP rates and economy for context.
- Taxes, Zakat deductions and account fees are not included unless you lower the rate yourself to allow for them. See Payments, tax, Islamic banking.
- Profit-based Islamic accounts pay a variable profit rate rather than fixed interest. You can still use the tool for an estimate with an assumed rate. More on Islamic finance.
For fixed products, compare with the savings interest calculator and the National Savings schemes. For a rough mental check of doubling time, try the Rule of 72.
Using it as a forex compounding calculator
Some traders use an investment growth calculator to project an account that "compounds" a fixed return every month. The arithmetic works, but the assumption does not match trading:
- Trading returns are not a fixed rate. Results vary from month to month and are often negative.
- Leveraged forex and CFD trading can lose money fast. A loss also shrinks the base that later gains compound on.
- After a loss, you need a larger percentage gain just to get back to where you started. The drawdown recovery calculator shows this.
- To see how a series of wins and losses can play out, use the trade series simulator instead of a fixed-rate projection.
Treat any compounding projection for trading as arithmetic only. It is not an expected outcome. In Pakistan, also note that per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). Read Law and regulators before dealing with any offshore platform.
Frequent questions
What is the difference between simple and compound interest?
Simple interest is paid only on the starting amount. Compound interest is also paid on interest already added, so the balance grows faster over time.
Does compounding frequency change the result much?
More frequent compounding gives a higher result at the same nominal rate, but the difference is usually small compared with changing the rate or the period. Switch the frequency in the tool to see the effect on your figures.
Can I set the regular addition to zero?
Yes. The tool then shows the growth of the starting amount only.
Why use the inflation adjustment?
A future balance buys less if prices rise. The adjusted value shows what the balance is worth in today's money.
Is this a forecast of my returns?
No. The tool applies a formula to the rate you enter. Actual returns depend on the product, taxes, fees and rate changes. For trading, returns are uncertain and losses are possible.
Where are the other calculators?
See all calculators and the section on Saving, Investing, Loans.