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How compounding works

Compound interest calculator

At the start almost all of the value is your own money. Given enough years, the market takes over. This is that curve seen from the inside.

Discounts the loss of purchasing power
from the market
Total contributed
Gain from the market
Final value (nominal)
Value in today's money
% generated by the market
What you contributed What the market generated Value in today's money (real)

Year by year

YearContributed (€)Nominal value (€)Real value (€)Unrealised gain (€)% gainSplit

The real value restates future capital in today's money by discounting inflation: 293,777 € thirty years from now, with inflation at 2.5 %, buys what about 140,000 € buys today. Markets are quoted in nominal terms but you live in real ones, which is why both figures matter. Constant average return and inflation are assumed, with contributions at the start of each month; reality will oscillate around these numbers. Capital gains tax applies only when you sell (see the Spanish tax calculator, in Spanish).