Rate-based calculator
5% Compound Interest Calculator
Use this page when you want to model a steady 5% annual return. It works well for conservative long-term assumptions, bond-heavy portfolios, and cautious savings projections.
Estimated final value
$ —
Total contributed
$ —Total interest earned
$ —Year-by-year breakdown
| Year | Ending balance | Total contributed | Total interest |
|---|
When a 5% assumption is useful
A 5% annual return is often used as a conservative planning number. It can help you stress-test a goal without relying on aggressive assumptions that make the final balance look better than reality.
How to read the result
- Treat the final value as an estimate, not a promise.
- Use the year-by-year table to see whether your contribution level is doing enough work.
- Compare this page with a 7% version to see how sensitive your plan is to return assumptions.