📈 Compound Interest

$10,000 at 5% for 5 Years

Investing $10,000 at 5% annual compound interest for 5 years grows to $12,763. That's $2,763 earned in interest on top of your original $10,000.

If you want to adjust the return assumption, extend the timeframe, or add regular contributions, use the compound interest calculator.

If you want the plain-English explanation behind the numbers, read our guide to compound interest.

Compound Interest Calculator
Australia 2026
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%
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Total value after 5 years
$12,763
Amount invested$10,000
Interest earned$2,763
Interest multiplier1.28×
Year-by-year growth
YearBalanceInterest
Yr 1$10,500+$500
Yr 2$11,025+$525
Yr 3$11,576+$551
Yr 4$12,155+$579
Yr 5$12,763+$608
Final balance after 5 years
$12,763
Invested
$10,000
Interest earned
$2,763
Multiplier
1.28×

How $10,000 grows at 5%

Compound interest earns returns on your returns — not just your original investment. At 5% per year, your money doubles every 14.4 years (the Rule of 72). Over 5 years, that compounds to a 1.28× multiplier.

In year 1, $10,000 earns $500 in interest. By year 5, the annual interest has grown to $608 — because each year's interest is calculated on a larger balance.

This is why longer holding periods matter so much. The later years do more of the heavy lifting, especially once the balance is large enough to generate bigger dollar returns each year.

$10,000 for 5 years at different rates
RateFinal balanceInterest earnedMultiplier
4%$12,167$2,1671.22×
5% ◀$12,763$2,7631.28×
6%$13,382$3,3821.34×
7%$14,026$4,0261.40×
8%$14,693$4,6931.47×
9%$15,386$5,3861.54×
10%$16,105$6,1051.61×

Year-by-year projection

YearBalanceInterest this yearTotal interestGrowth
Year 1$10,500+$500$5001.05×
Year 2$11,025+$525$1,0251.10×
Year 3$11,576+$551$1,5761.16×
Year 4$12,155+$579$2,1551.22×
Year 5$12,763+$608$2,7631.28×

Growth chart

Balance growth over 5 years
$3k$6k$10k$13kYr1Yr5
Principal
Interest earned

Frequently asked questions

Related compound interest scenarios

Use these nearby examples to compare what changes when you keep the same starting balance, extend the investing period, or test a more aggressive return assumption.

Compound interest guide and tools

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