📈 Compound Interest

$2,000 at 5% for 20 Years

Investing $2,000 at 5% annual compound interest for 20 years grows to $5,307. That's $3,307 earned in interest on top of your original $2,000.

Compound Interest Calculator
Australia 2026
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%
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Total value after 20 years
$5,307
Amount invested$2,000
Interest earned$3,307
Interest multiplier2.65×
Year-by-year growth
YearBalanceInterest
Yr 1$2,100+$100
Yr 2$2,205+$105
Yr 3$2,315+$110
Yr 4$2,431+$116
Yr 5$2,553+$122
Yr 6$2,680+$128
Yr 7$2,814+$134
Yr 8$2,955+$141
Yr 9$3,103+$148
Yr 10$3,258+$155
Yr 11$3,421+$163
Yr 12$3,592+$171
Yr 13$3,771+$180
Yr 14$3,960+$189
Yr 15$4,158+$198
Yr 16$4,366+$208
Yr 17$4,584+$218
Yr 18$4,813+$229
Yr 19$5,054+$241
Yr 20$5,307+$253
Final balance after 20 years
$5,307
Invested
$2,000
Interest earned
$3,307
Multiplier
2.65×

How $2,000 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 20 years, that compounds to a 2.65× multiplier.

In year 1, $2,000 earns $100 in interest. By year 20, the annual interest has grown to $253 — because each year's interest is calculated on a larger balance.

$2,000 for 20 years at different rates
RateFinal balanceInterest earnedMultiplier
4%$4,382$2,3822.19×
5% ◀$5,307$3,3072.65×
6%$6,414$4,4143.21×
7%$7,739$5,7393.87×
8%$9,322$7,3224.66×
9%$11,209$9,2095.60×
10%$13,455$11,4556.73×

Year-by-year projection

YearBalanceInterest this yearTotal interestGrowth
Year 1$2,100+$100$1001.05×
Year 2$2,205+$105$2051.10×
Year 3$2,315+$110$3151.16×
Year 4$2,431+$116$4311.22×
Year 5$2,553+$122$5531.28×
Year 6$2,680+$128$6801.34×
Year 7$2,814+$134$8141.41×
Year 8$2,955+$141$9551.48×
Year 9$3,103+$148$1,1031.55×
Year 10$3,258+$155$1,2581.63×
Year 11$3,421+$163$1,4211.71×
Year 12$3,592+$171$1,5921.80×
Year 13$3,771+$180$1,7711.89×
Year 14$3,960+$189$1,9601.98×
Year 15$4,158+$198$2,1582.08×
Year 16$4,366+$208$2,3662.18×
Year 17$4,584+$218$2,5842.29×
Year 18$4,813+$229$2,8132.41×
Year 19$5,054+$241$3,0542.53×
Year 20$5,307+$253$3,3072.65×

Growth chart

Balance growth over 20 years
$1k$3k$4k$5kYr1Yr5Yr10Yr15Yr20
Principal
Interest earned

Frequently asked questions

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