Crypto Compounding Interest Calculator

Total Deposits
Total Interest
Total Balance

Effective Interest Rate: (annual)


Initial Investment: $10,000

Interest Rate: 7%

Years: 21

Deposit: $100

Interest Earned: $62,064.1

New Balance: $97,264.1

Compounding Interest - Investment Analysis

Year Start Principal Deposits Yearly Interest Total Interest Balance
2020 $10,000 $1,200 $745.03 $745.03 $11,945.03
2021 $10,000 $2,400 $881.18 $1,626.21 $14,026.21
2022 $10,000 $3,600 $1,026.86 $2,653.08 $16,253.08
2023 $10,000 $4,800 $1,182.75 $3,835.82 $18,635.82
2024 $10,000 $6,000 $1,349.54 $5,185.36 $21,185.36
2025 $10,000 $7,200 $1,528 $6,713.36 $23,913.36
2026 $10,000 $8,400 $1,718.97 $8,432.33 $26,832.33
2027 $10,000 $9,600 $1,923.29 $10,355.62 $29,955.62
2028 $10,000 $10,800 $2,141.92 $12,497.54 $33,297.54
2029 $10,000 $12,000 $2,375.86 $14,873.40 $36,873.40
2030 $10,000 $13,200 $2,626.17 $17,499.57 $40,699.57
2031 $10,000 $14,400 $2,894 $20,393.57 $44,793.57
2032 $10,000 $15,600 $3,180.58 $23,574.15 $49,174.15
2033 $10,000 $16,800 $3,487.22 $27,061.37 $53,861.37
2034 $10,000 $18,000 $3,815.33 $30,876.69 $58,876.69
2035 $10,000 $19,200 $4,166.40 $35,043.09 $64,243.09
2036 $10,000 $20,400 $4,542.05 $39,585.14 $69,985.14
2037 $10,000 $21,600 $4,943.99 $44,529.13 $76,129.13
2038 $10,000 $22,800 $5,374.07 $49,903.20 $82,703.20
2039 $10,000 $24,000 $5,834.25 $55,737.45 $89,737.45

Compounding Interval Comparison

Compound Interval Total Amount Interest
Annually (1) $89,737.45 $55,737.45
Semi-Annually (2) $91,353.56 $57,353.56
Quarterly (4) $92,202.19 $58,202.19
Bi-Monthly (6) $92,491.42 $58,491.42
Monthly (12) $92,783.93 $58,783.93
Semi-Monthly (24) $92,931.43 $58,931.43
Bi-Weekly (26) $92,942.81 $58,942.81
Weekly (52) $93,011.20 $59,011.20
Daily (365) $93,069.99 $59,069.99

How can you benefit from using a compound interest calculator? Are you the type of person who prefers to get involved for the long-haul rather than short-term, swing-trade, or scalpers’ profits? If so, you probably already know about the potential advantages of investing in cryptocurrencies like Bitcoin and Ethereum?

The good news is that even though the crypto markets are volatile, they offer long horizons that are incredibly attractive. That’s partly because, even with all the ups and downs of daily prices, the major players in the space have done exceptionally well during the past decade.

Widespread Acceptance

If you follow the financial and economic news, it’s clear that the market leader, Bitcoin, and its chief competitor, Ethereum, are at last gaining widespread acceptance.

Not only are individuals and corporations beginning to put portions of their portfolios in cryptocurrency, but institutions and national governments are also buying up large quantities of altcoins.

Retirement Accounts

No longer are cryptos viewed as oddities. More evidence that the new form of money is ramping up its credibility in the financial community is this: crypto-based IRAs are one of the hottest sectors of the retirement account market right now.

Millions of mid-career workers are realizing the vast profit potential of keeping at least a portion of their retirement accounts in altcoins.

Using a handy online calculator, anyone can get a clear idea about the power of adding coins like Ethereum and others to a retirement or standard savings account.

The only data you need are:

The initial deposit amount.
The monthly or annual contribution amount.
The estimated rate of interest.
The length of time you wish to let the profits accumulate.

A Realistic Example for Using the Calculator

Here’s a hypothetical example, using bitcoin as the investment asset, assuming no initial deposit, a conservative interest rate of five percent, monthly contributions of $200, and a 20-year time frame.

Plugging all that data into the calculator shows a grand total of interest to the tune of $33,491, with total contributions, in raw dollars, of $48,000. In the end, your account balance is $81,491. What the calculator does not show is that the total amount of interest represents a nearly 70 percent total return on the amount invested.

Few cryptocurrency coins, Bitcoin or others, will deliver steady profits of five or any percentage over time. But we need to use a fixed number for the calculator, and five percent is both workable and realistic for making a conservative estimate of what the account balance will be at the end of the 20 years.

How to Estimate Interest Rates

You can use a number of different methods for estimating rates of return on investments like bitcoin. One of the best ways, which is often used in the realm of traditional stock-market trading, is to use the past five-year returns chart for a given commodity or asset class, in this case, cryptocurrency.

Note that it’s even better to use a more extended time period than five years if there is available data. However, avoid using the first one or two years immediately following a coin’s issuance. Those first 24 months often display wild price swings and are not very representative of normal conditions.

Bitcoin and Ethereum, as well as other cryptos that have been around for several years, are relatively easy to estimate interest rates for because you have plenty of data to deal with.

Let’s take a closer look at what the returns have been on Ethereum and Bitcoin in the recent past. Over the past 12 months, the coin’s value has risen, with ups and downs in between, from around $15,000 to $61,000, which represents about a 300 percent rate of return.

Two years ago, Bitcoin’s price stood at $9,415, and three years ago at $6,447. Four years ago, the price was $7,383. So, there have been some wild rides during the past four years, but with one exception, yearly returns were quite positive.

This is a perfect illustration of how difficult it can be to set a fixed rate of return on a crypto asset when using a calculator.

An Ethereum Example

It took longer for Ethereum to gain a foothold among investors, which is why its past five-year prices have been so volatile. Currently, the coin is valued at $4,441. At the end of 2020, 2019, 2018, and 2017, its prices, respectively, were $730, $134, $138, and $756. So, Ethereum has had a great run, but between 2017 and 2018, returns were negative.

This up-and-down profitability is typical in the crypto space, which is why investors should protect themselves with diversification. As a result, many altcoin enthusiasts invest no more than 10 percent of their portfolios in cryptocurrencies.