Compound Interest Calculator
See how a starting amount grows over time when interest is added on top of interest.
How to use
- 1
Type in how much you're starting with. This is the amount sitting in the account on day one. If you're only contributing monthly and starting from zero, leave this at 0.
- 2
Enter the yearly interest rate. A UAE savings account today pays roughly 1–3% per year. A diversified index-fund portfolio has historically averaged 6–8% per year over long periods. If you don't know your rate, try 5% as a middle-of-the-road estimate.
- 3
Pick how many years the money will sit invested. Compound interest only shows its real power past year 10. Try 5, 15, and 30 to see how the curve bends.
- 4
If you plan to add money every month, enter that amount as the monthly contribution. Even AED 500 a month for 20 years adds up to AED 120,000 deposited — and far more after interest.
- 5
Choose how often the interest compounds. Most UAE savings accounts compound daily; most investments compound annually; bonds compound semi-annually. When in doubt, pick monthly.
- 6
The result shows your final balance, how much of it is your money versus earned interest, and a year-by-year breakdown so you can see the curve.
Frequently asked questions
Interest paid on the interest you've already earned. If you deposit AED 1,000 at 10% per year, after year one you have AED 1,100. Year two earns 10% on the whole AED 1,100 (not just the original AED 1,000), giving you AED 1,210. The longer you leave it, the more the snowball grows.
Simple interest pays you the same amount every year (10% of AED 1,000 = AED 100 per year, no matter how many years pass). Compound interest pays you more each year because the balance keeps growing. Over 30 years at 10%, simple interest turns AED 1,000 into AED 4,000. Compound interest turns it into roughly AED 17,500.
More frequent compounding gives slightly more growth, but the difference is small. AED 10,000 at 5% for 10 years grows to AED 16,289 if compounded annually and AED 16,470 if compounded daily. The compounding frequency matters far less than the rate and the time you leave the money invested.
A UAE bank savings account pays 1–3% in 2026. A fixed deposit pays 3–4.5% if you lock the money for 12 months or longer. A diversified investment portfolio (index funds, mixed bonds and equities) has historically returned 6–8% per year over 20-year periods. Use the figure that matches what you're actually planning to do.
Each contribution starts compounding from the day it lands. AED 500 added in year one grows for the full investment period; AED 500 added in year ten only grows for the years remaining. Over 30 years, adding AED 500 every month at 7% adds about AED 590,000 to the final balance, even though the deposits total only AED 180,000.
No. The final number is in nominal AED — what the balance will literally show. Real spending power will be lower because of inflation. As a rough adjustment, subtract 2–3% from the interest rate to estimate the real (after-inflation) return.
A quick mental shortcut: divide 72 by the interest rate to estimate how many years it takes for money to double. At 8% per year, money doubles roughly every 9 years (72 ÷ 8). At 6%, it takes about 12 years. Useful for back-of-the-envelope checks before reaching for a calculator.
Not in a bank savings account, where the rate is positive and your principal is safe. But the calculator assumes a fixed return every year. Real investments rise and fall — a 7% average over 20 years usually means some great years and some terrible ones. The calculator shows the average outcome, not the journey.
Related tools
Source: Standard compound-interest formula · Last verified 2026-06. This tool provides estimates only and is not legal, tax or financial advice. Always verify your specific situation with the relevant UAE authority or a licensed advisor before taking action.