📈 Compound Interest
$5,000 at 8% for 20 Years
Investing $5,000 at 8% annual compound interest for 20 years grows to $23,305. That's $18,305 earned in interest on top of your original $5,000.
Compound Interest Calculator
Australia 2026
$
%
$
Total value after 20 years
$23,305
Amount invested$5,000
Interest earned$18,305
Interest multiplier4.66×
Year-by-year growth
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $5,400 | +$400 |
| Yr 2 | $5,832 | +$432 |
| Yr 3 | $6,299 | +$467 |
| Yr 4 | $6,802 | +$504 |
| Yr 5 | $7,347 | +$544 |
| Yr 6 | $7,934 | +$588 |
| Yr 7 | $8,569 | +$635 |
| Yr 8 | $9,255 | +$686 |
| Yr 9 | $9,995 | +$740 |
| Yr 10 | $10,795 | +$800 |
| Yr 11 | $11,658 | +$864 |
| Yr 12 | $12,591 | +$933 |
| Yr 13 | $13,598 | +$1,007 |
| Yr 14 | $14,686 | +$1,088 |
| Yr 15 | $15,861 | +$1,175 |
| Yr 16 | $17,130 | +$1,269 |
| Yr 17 | $18,500 | +$1,370 |
| Yr 18 | $19,980 | +$1,480 |
| Yr 19 | $21,579 | +$1,598 |
| Yr 20 | $23,305 | +$1,726 |
Final balance after 20 years
$23,305
Invested
$5,000
Interest earned
$18,305
Multiplier
4.66×
How $5,000 grows at 8%
Compound interest earns returns on your returns — not just your original investment. At 8% per year, your money doubles every 9 years (the Rule of 72). Over 20 years, that compounds to a 4.66× multiplier.
In year 1, $5,000 earns $400 in interest. By year 20, the annual interest has grown to $1,726 — 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 | $5,400 | +$400 | $400 | 1.08× |
| Year 2 | $5,832 | +$432 | $832 | 1.17× |
| Year 3 | $6,299 | +$467 | $1,299 | 1.26× |
| Year 4 | $6,802 | +$504 | $1,802 | 1.36× |
| Year 5 | $7,347 | +$544 | $2,347 | 1.47× |
| Year 6 | $7,934 | +$588 | $2,934 | 1.59× |
| Year 7 | $8,569 | +$635 | $3,569 | 1.71× |
| Year 8 | $9,255 | +$686 | $4,255 | 1.85× |
| Year 9 | $9,995 | +$740 | $4,995 | 2.00× |
| Year 10 | $10,795 | +$800 | $5,795 | 2.16× |
| Year 11 | $11,658 | +$864 | $6,658 | 2.33× |
| Year 12 | $12,591 | +$933 | $7,591 | 2.52× |
| Year 13 | $13,598 | +$1,007 | $8,598 | 2.72× |
| Year 14 | $14,686 | +$1,088 | $9,686 | 2.94× |
| Year 15 | $15,861 | +$1,175 | $10,861 | 3.17× |
| Year 16 | $17,130 | +$1,269 | $12,130 | 3.43× |
| Year 17 | $18,500 | +$1,370 | $13,500 | 3.70× |
| Year 18 | $19,980 | +$1,480 | $14,980 | 4.00× |
| Year 19 | $21,579 | +$1,598 | $16,579 | 4.32× |
| Year 20 | $23,305 | +$1,726 | $18,305 | 4.66× |
Growth chart
Balance growth over 20 years
Principal
Interest earned
Frequently asked questions
Explore other scenarios
$5,000 for 20 years — other rates
$5,000 at 8% — other time horizons
Related calculators
Compound Interest Calculator
Australia 2026
$
%
$
Total value after 20 years
$23,305
Amount invested$5,000
Interest earned$18,305
Interest multiplier4.66×
Year-by-year growth
| Year | Balance | Interest |
|---|---|---|
| Yr 1 | $5,400 | +$400 |
| Yr 2 | $5,832 | +$432 |
| Yr 3 | $6,299 | +$467 |
| Yr 4 | $6,802 | +$504 |
| Yr 5 | $7,347 | +$544 |
| Yr 6 | $7,934 | +$588 |
| Yr 7 | $8,569 | +$635 |
| Yr 8 | $9,255 | +$686 |
| Yr 9 | $9,995 | +$740 |
| Yr 10 | $10,795 | +$800 |
| Yr 11 | $11,658 | +$864 |
| Yr 12 | $12,591 | +$933 |
| Yr 13 | $13,598 | +$1,007 |
| Yr 14 | $14,686 | +$1,088 |
| Yr 15 | $15,861 | +$1,175 |
| Yr 16 | $17,130 | +$1,269 |
| Yr 17 | $18,500 | +$1,370 |
| Yr 18 | $19,980 | +$1,480 |
| Yr 19 | $21,579 | +$1,598 |
| Yr 20 | $23,305 | +$1,726 |