Compound interest calculator
The same sum of money, left to compound, what scale does it reach in a few years? Enter the principal, the annual return you assume and the number of years, and it works out the future value and total return by the compound formula, with a bar showing how much is principal and how much is gain. The return is your own assumption, not any promise. Everything runs in your browser. Nothing is uploaded or stored.
Gain as a share of future value 0.00%
*20% spot fee discount; the actual rate shown on Binance's page applies and may change with policy.
How compounding is calculated
The most basic annual compound formula is: future value = principal × (1 + annual return) ^ years. With 1000 in principal, an 8% annual return, over 10 years, that is 1000 × (1.08)^10 ≈ 2159, a total return of 1159, a fair bit more than simple interest's 800, the difference being the 'interest on interest'. If it settles several times a year (monthly, daily), the formula becomes principal × (1 + annual return / m) ^ (m × years), where m is the number of compounding periods per year, and the higher the frequency, the slightly higher the future value.
Honestly, though: this tool only demonstrates the math of compounding; it does not predict the market. The real return on stock tokens and crypto assets differs year to year, can soar or crash, and no fixed annual rate is reliable. The return you enter is an assumption, there to convey the power of time and compounding, not a return promise.
Compounding assumes 'no withdrawals along the way, with gains reinvested'. Short-term in-and-out trading, ground down by fees and slippage, never lets compounding build up. To work out the cumulative effect of continuous contributions like DCA, the DCA calculator fits better; for the P&L of a single trade, use the P&L calculator.
Put compounding to work in the right place
If you plan to hold bStocks long term for growth, or put them to work earning in on-chain LP/lending, the compounding mindset is useful, but those scenarios each carry risk. For the impermanent loss of providing liquidity, see providing liquidity with bStocks on PancakeSwap; for the liquidation risk of lending, see lending bStocks on Venus. Understand the underlying risk first, then talk about making money grow.