Compound Interest Calculator
Visualize the "eighth wonder of the world." See how consistent saving and the power of time can transform your financial future.
Compound Interest Parameters
Adjust the sliders to see how your investment grows over time.
Results Summary
Ending Balance
Ksh 1,127
Effect of compounding increases your effective annual rate.
Compounding Effect
You earned Ksh 7 more than simple interest through compounding.
Why Compounding Matters
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. In the context of Kenyan investments like Money Market Funds (MMFs) or Sacco deposits, this "interest on interest" is the primary driver of long-term wealth.
The Power of Frequency
The more frequently interest is compounded, the higher the final amount will be. For example, an MMF that compounds interest daily or monthly will typically outperform a fixed deposit that only compounds annually, even if the nominal rates are identical.
The Rule of 72
A quick way to estimate how long it takes to double your money: Divide 72 by your annual interest rate. At a 12% yield (common for many Kenyan MMFs in 2026), your money doubles every 6 years (72 / 12 = 6).
Consistency is Key
Adding even a small amount regularly (monthly contributions) dramatically changes the outcome. Our calculator allows you to see the "Contribution vs Interest" breakdown so you can see exactly when your interest starts doing more work than your deposits.