📈 Compound Interest
$1,000 at 7% for 20 Years
Investing $1,000 at 7% annual compound interest for 20 years grows to $3,870. That's $2,870 earned in interest on top of your original $1,000.
Compound Interest Calculator
Australia 2026
$
%
$
Total value after 20 years
$3,870
Amount invested$1,000
Interest earned$2,870
Interest multiplier3.87×
Year-by-year growth
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $1,070 | +$70 |
| Yr 2 | $1,145 | +$75 |
| Yr 3 | $1,225 | +$80 |
| Yr 4 | $1,311 | +$86 |
| Yr 5 | $1,403 | +$92 |
| Yr 6 | $1,501 | +$98 |
| Yr 7 | $1,606 | +$105 |
| Yr 8 | $1,718 | +$112 |
| Yr 9 | $1,838 | +$120 |
| Yr 10 | $1,967 | +$129 |
| Yr 11 | $2,105 | +$138 |
| Yr 12 | $2,252 | +$147 |
| Yr 13 | $2,410 | +$158 |
| Yr 14 | $2,579 | +$169 |
| Yr 15 | $2,759 | +$180 |
| Yr 16 | $2,952 | +$193 |
| Yr 17 | $3,159 | +$207 |
| Yr 18 | $3,380 | +$221 |
| Yr 19 | $3,617 | +$237 |
| Yr 20 | $3,870 | +$253 |
Final balance after 20 years
$3,870
Invested
$1,000
Interest earned
$2,870
Multiplier
3.87×
How $1,000 grows at 7%
Compound interest earns returns on your returns — not just your original investment. At 7% per year, your money doubles every 10.3 years (the Rule of 72). Over 20 years, that compounds to a 3.87× multiplier.
In year 1, $1,000 earns $70 in interest. By year 20, the annual interest has grown to $253 — because each year's interest is calculated on a larger balance.
Year-by-year projection
| Year | Balance | Interest this year | Total interest | Growth |
|---|---|---|---|---|
| Year 1 | $1,070 | +$70 | $70 | 1.07× |
| Year 2 | $1,145 | +$75 | $145 | 1.14× |
| Year 3 | $1,225 | +$80 | $225 | 1.23× |
| Year 4 | $1,311 | +$86 | $311 | 1.31× |
| Year 5 | $1,403 | +$92 | $403 | 1.40× |
| Year 6 | $1,501 | +$98 | $501 | 1.50× |
| Year 7 | $1,606 | +$105 | $606 | 1.61× |
| Year 8 | $1,718 | +$112 | $718 | 1.72× |
| Year 9 | $1,838 | +$120 | $838 | 1.84× |
| Year 10 | $1,967 | +$129 | $967 | 1.97× |
| Year 11 | $2,105 | +$138 | $1,105 | 2.10× |
| Year 12 | $2,252 | +$147 | $1,252 | 2.25× |
| Year 13 | $2,410 | +$158 | $1,410 | 2.41× |
| Year 14 | $2,579 | +$169 | $1,579 | 2.58× |
| Year 15 | $2,759 | +$180 | $1,759 | 2.76× |
| Year 16 | $2,952 | +$193 | $1,952 | 2.95× |
| Year 17 | $3,159 | +$207 | $2,159 | 3.16× |
| Year 18 | $3,380 | +$221 | $2,380 | 3.38× |
| Year 19 | $3,617 | +$237 | $2,617 | 3.62× |
| Year 20 | $3,870 | +$253 | $2,870 | 3.87× |
Growth chart
Balance growth over 20 years
Principal
Interest earned
Frequently asked questions
Explore other scenarios
$1,000 for 20 years — other rates
$1,000 at 7% — other time horizons
Related calculators
Compound Interest Calculator
Australia 2026
$
%
$
Total value after 20 years
$3,870
Amount invested$1,000
Interest earned$2,870
Interest multiplier3.87×
Year-by-year growth
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $1,070 | +$70 |
| Yr 2 | $1,145 | +$75 |
| Yr 3 | $1,225 | +$80 |
| Yr 4 | $1,311 | +$86 |
| Yr 5 | $1,403 | +$92 |
| Yr 6 | $1,501 | +$98 |
| Yr 7 | $1,606 | +$105 |
| Yr 8 | $1,718 | +$112 |
| Yr 9 | $1,838 | +$120 |
| Yr 10 | $1,967 | +$129 |
| Yr 11 | $2,105 | +$138 |
| Yr 12 | $2,252 | +$147 |
| Yr 13 | $2,410 | +$158 |
| Yr 14 | $2,579 | +$169 |
| Yr 15 | $2,759 | +$180 |
| Yr 16 | $2,952 | +$193 |
| Yr 17 | $3,159 | +$207 |
| Yr 18 | $3,380 | +$221 |
| Yr 19 | $3,617 | +$237 |
| Yr 20 | $3,870 | +$253 |