Savings & Interest Growth Calculator
See how a lump sum plus monthly contributions grows over time, with a full year-by-year breakdown.
| Year | Contributed (year) | Interest (year) | Balance (end of year) |
|---|
Assumes a constant annual rate for the whole period and contributions made at the end of each month. The UAE does not tax personal savings interest, so figures shown are gross. This is a planning estimate, not a guaranteed return — actual rates vary by provider and product, and this is not financial advice.
How the calculation works
For compound interest, the balance at the end of each compounding period is the previous balance plus interest for that period, plus any new contributions added during it. Interest is calculated as balance × (annual rate ÷ compounding frequency), applied every period, so contributions made earlier in the timeline have longer to earn interest than contributions made later.
For simple interest, interest is calculated only on the original starting amount for the whole term, and does not compound on contributions or on interest already earned — it grows in a straight line rather than a curve.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on your original principal, so it grows by the same amount every period. Compound interest is calculated on the principal plus all interest already earned, so growth accelerates over time. Almost all savings accounts, fixed deposits and investment products compound, so it's the more realistic choice for long-term projections.
How does compounding frequency change the result?
The more often interest compounds — annually, monthly, or daily — the faster it grows, because each compounding period adds interest that itself starts earning interest sooner. Monthly compounding on the same rate will always produce a slightly higher final balance than annual compounding.
Does this account for tax on interest?
No. The UAE does not levy personal income tax on individual savings interest, so this calculator shows gross growth. If your provider or product is subject to a different tax treatment, deduct that separately from the result shown here.
Is a fixed annual rate realistic for the whole period?
This tool assumes one constant annual rate for simplicity, which is a reasonable approximation for a fixed deposit but won't capture a variable-rate savings account or an investment whose return changes year to year. Use it as a planning estimate, not a guaranteed projection.