*Results are estimates only. Past performance is not indicative of future returns. Consult a financial advisor for advice.
Investment Summary
Future Value:
Total Invested:
Total Return:
Compound interest calculator for Australian investors. Project returns on ETFs, shares, and savings.
*Results are estimates only. Past performance is not indicative of future returns. Consult a financial advisor for advice.
Future Value:
Total Invested:
Total Return:
Compound interest is when you earn interest not only on your initial investment but also on the accumulated interest from previous periods. It's often called "interest on interest" and can significantly boost your returns over time.
Example:
This effect becomes more powerful over longer time periods, making it a crucial concept for long-term wealth building.
Australian ETFs benefit from compound growth through:
Popular Australian ETFs for compound growth:
By reinvesting dividends through DRP, you can accelerate your compound growth by automatically buying more ETF units with your dividend payments.
Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount regularly, regardless of market conditions. In Australia, this might mean:
Benefits of DCA:
Franking credits (also called imputation credits) can enhance your compound returns in Australia by:
Example:
This unique Australian system can significantly boost long-term returns when combined with compound interest.
The frequency of your contributions can significantly impact your compound growth:
Example comparison:
With the same annual total but more frequent contributions, the weekly strategy often performs better due to putting money to work sooner and capturing more compounding opportunities.
I write about personal finance in Australia, hoping to make it a bit easier to understand. Check out my articles on salary sacrifice, crypto tax, CGT, and the FIRE movement.
