$5,000 at 8% for 5 Years
Investing $5,000 at 8% annual compound interest for 5 years grows to $7,347. That's $2,347 earned in interest on top of your original $5,000.
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.
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $5,400 | +$400 |
| Yr 2 | $5,832 | +$432 |
| Yr 3 | $6,299 | +$467 |
| Yr 4 | $6,802 | +$504 |
| Yr 5 | $7,347 | +$544 |
How $5,000 grows at 8%
Compound interest earns returns on your returns — not just your original investment. At 8% per year, your money doubles every 9 years (the Rule of 72). Over 5 years, that compounds to a 1.47× multiplier.
In year 1, $5,000 earns $400 in interest. By year 5, the annual interest has grown to $544 — 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.
Year-by-year projection
| Year | Balance | Interest this year | Total interest | Growth |
|---|---|---|---|---|
| Year 1 | $5,400 | +$400 | $400 | 1.08× |
| Year 2 | $5,832 | +$432 | $832 | 1.17× |
| Year 3 | $6,299 | +$467 | $1,299 | 1.26× |
| Year 4 | $6,802 | +$504 | $1,802 | 1.36× |
| Year 5 | $7,347 | +$544 | $2,347 | 1.47× |
Growth chart
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
Related calculators
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $5,400 | +$400 |
| Yr 2 | $5,832 | +$432 |
| Yr 3 | $6,299 | +$467 |
| Yr 4 | $6,802 | +$504 |
| Yr 5 | $7,347 | +$544 |