The power of compound interest
Visualise the growth of your capital over time. Set your parameters and watch the exponential effect of reinvestment, year after year.
Your parameters
This calculator illustrates a mathematical mechanism for educational purposes. The return entered is an assumption and not a promise: past performance is not a reliable indicator of future performance. All investment carries a risk of capital loss. Results are given before inflation, fees and taxation. It does not constitute investment advice within the meaning of the LSFin.
Why compound interest changes everything
The principle of compound interest is one of the most powerful in finance: when one year's gains are reinvested, they in turn generate gains the following year. Capital no longer grows in a linear way, but exponentially. Over a long horizon, the gap becomes striking — that is what the chart above makes visible.
A starting capital of 10'000 CHF, topped up by 500 CHF a month for 20 years at an average return of 6 %, reaches far more than the simple sum of the contributions: the difference is compound interest. The earlier you start, the more this effect works in your favour — time is your best ally in investing.
How to read the projection
- The light part of each bar represents your cumulative contributions — the money you have actually set aside.
- The gold part represents the gains generated by compounding — the money your capital has produced on its own.
- Year after year, the gold share grows faster and faster: that is the exponential effect of compound interest.
This calculator illustrates a mathematical mechanism. The return entered is an assumption, not a promise: past performance is not a reliable indicator of future performance, and all investment carries a risk of capital loss. Results are given before inflation, fees and taxation.
Capital that grows is good. Well invested, it is better.
This simulator shows the potential. You still need to invest in the right vehicles, suited to your situation. An expert guides you in turning this projection into a real strategy — with no obligation.