📈 Compound Interest
$5,000 at 7% for 20 Years
Investing $5,000 at 7% annual compound interest for 20 years grows to $19,348. That's $14,348 earned in interest on top of your original $5,000.
Compound Interest Calculator
Australia 2026
$
%
$
Total value after 20 years
$19,348
Amount invested$5,000
Interest earned$14,348
Interest multiplier3.87×
Year-by-year growth
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $5,350 | +$350 |
| Yr 2 | $5,725 | +$375 |
| Yr 3 | $6,125 | +$401 |
| Yr 4 | $6,554 | +$429 |
| Yr 5 | $7,013 | +$459 |
| Yr 6 | $7,504 | +$491 |
| Yr 7 | $8,029 | +$525 |
| Yr 8 | $8,591 | +$562 |
| Yr 9 | $9,192 | +$601 |
| Yr 10 | $9,836 | +$643 |
| Yr 11 | $10,524 | +$689 |
| Yr 12 | $11,261 | +$737 |
| Yr 13 | $12,049 | +$788 |
| Yr 14 | $12,893 | +$843 |
| Yr 15 | $13,795 | +$902 |
| Yr 16 | $14,761 | +$966 |
| Yr 17 | $15,794 | +$1,033 |
| Yr 18 | $16,900 | +$1,106 |
| Yr 19 | $18,083 | +$1,183 |
| Yr 20 | $19,348 | +$1,266 |
Final balance after 20 years
$19,348
Invested
$5,000
Interest earned
$14,348
Multiplier
3.87×
How $5,000 grows at 7%
Compound interest earns returns on your returns — not just your original investment. At 7% per year, your money doubles every 10.3 years (the Rule of 72). Over 20 years, that compounds to a 3.87× multiplier.
In year 1, $5,000 earns $350 in interest. By year 20, the annual interest has grown to $1,266 — because each year's interest is calculated on a larger balance.
Year-by-year projection
| Year | Balance | Interest this year | Total interest | Growth |
|---|---|---|---|---|
| Year 1 | $5,350 | +$350 | $350 | 1.07× |
| Year 2 | $5,725 | +$375 | $725 | 1.14× |
| Year 3 | $6,125 | +$401 | $1,125 | 1.23× |
| Year 4 | $6,554 | +$429 | $1,554 | 1.31× |
| Year 5 | $7,013 | +$459 | $2,013 | 1.40× |
| Year 6 | $7,504 | +$491 | $2,504 | 1.50× |
| Year 7 | $8,029 | +$525 | $3,029 | 1.61× |
| Year 8 | $8,591 | +$562 | $3,591 | 1.72× |
| Year 9 | $9,192 | +$601 | $4,192 | 1.84× |
| Year 10 | $9,836 | +$643 | $4,836 | 1.97× |
| Year 11 | $10,524 | +$689 | $5,524 | 2.10× |
| Year 12 | $11,261 | +$737 | $6,261 | 2.25× |
| Year 13 | $12,049 | +$788 | $7,049 | 2.41× |
| Year 14 | $12,893 | +$843 | $7,893 | 2.58× |
| Year 15 | $13,795 | +$902 | $8,795 | 2.76× |
| Year 16 | $14,761 | +$966 | $9,761 | 2.95× |
| Year 17 | $15,794 | +$1,033 | $10,794 | 3.16× |
| Year 18 | $16,900 | +$1,106 | $11,900 | 3.38× |
| Year 19 | $18,083 | +$1,183 | $13,083 | 3.62× |
| Year 20 | $19,348 | +$1,266 | $14,348 | 3.87× |
Growth chart
Balance growth over 20 years
Principal
Interest earned
Frequently asked questions
Explore other scenarios
$5,000 for 20 years — other rates
$5,000 at 7% — other time horizons
Related calculators
Compound Interest Calculator
Australia 2026
$
%
$
Total value after 20 years
$19,348
Amount invested$5,000
Interest earned$14,348
Interest multiplier3.87×
Year-by-year growth
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $5,350 | +$350 |
| Yr 2 | $5,725 | +$375 |
| Yr 3 | $6,125 | +$401 |
| Yr 4 | $6,554 | +$429 |
| Yr 5 | $7,013 | +$459 |
| Yr 6 | $7,504 | +$491 |
| Yr 7 | $8,029 | +$525 |
| Yr 8 | $8,591 | +$562 |
| Yr 9 | $9,192 | +$601 |
| Yr 10 | $9,836 | +$643 |
| Yr 11 | $10,524 | +$689 |
| Yr 12 | $11,261 | +$737 |
| Yr 13 | $12,049 | +$788 |
| Yr 14 | $12,893 | +$843 |
| Yr 15 | $13,795 | +$902 |
| Yr 16 | $14,761 | +$966 |
| Yr 17 | $15,794 | +$1,033 |
| Yr 18 | $16,900 | +$1,106 |
| Yr 19 | $18,083 | +$1,183 |
| Yr 20 | $19,348 | +$1,266 |