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Home / Compound interest / $1,000 for 20 years

$1,000 Compound Interest Over 20 Years

This page shows what a single deposit of $1,000 can grow to over 20 years. The starting return is 6 percent a year and you can change it.

By the end of 20 years the balance is $3,310. Interest has added $2,310 to the original $1,000.

$
$
%
years
%
Final balance
$3,310
Total you put in
$1,000
Interest earned
$2,310
Year by year
YearTotal put inBalance
1$1,000$1,062
2$1,000$1,127
3$1,000$1,197
4$1,000$1,270
5$1,000$1,349
6$1,000$1,432
7$1,000$1,520
8$1,000$1,614
9$1,000$1,714
10$1,000$1,819
11$1,000$1,932
12$1,000$2,051
13$1,000$2,177
14$1,000$2,312
15$1,000$2,454
16$1,000$2,605
17$1,000$2,766
18$1,000$2,937
19$1,000$3,118
20$1,000$3,310
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How the growth is worked out

Compound interest means interest earns interest. Each month the balance gains 0.5 percent of itself. After 240 months of that, $1,000 has grown by a factor of 3.31.

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Worked example

A deposit of $1,000 earning 6 percent a year reaches $3,310 after 20 years. Interest supplies $2,310 of that.

Halfway through, at 10 years, the balance is $1,819. The second half adds $1,491.

Questions about this calculator

What if the return on $1,000 over 20 years were one point lower than 6 percent?

At 5 percent the balance after 20 years is $2,713 instead of $3,310. One point higher gives $4,039.

What is $3,310 worth after prices rise 2.5 percent a year?

If prices rise at 2.5 percent a year for 20 years the final balance has the buying power of about $2,020 in starting-year money. Enter your own inflation rate in the calculator to test other cases.

What if you added $100 a month to $1,000 over 20 years?

The balance would reach $49,514 instead of $3,310. The deposits would add $24,000.

What yearly return would double $1,000 in 20 years?

About 3.5 percent a year. That is the rate at which $1,000 reaches $2,000 by year 20.

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This page is for education only and is not financial or tax advice.