Published 18 October 2026
See how your savings grow with EU rate presets and monthly contributions.
Researched by MixKhazana Team · Last updated 24 October 2026 · Rate presets: typical advertised EU savings rates, October 2026
Compound interest means you earn interest on your interest. Each compounding period, the interest is added to the balance, so the next period's interest is calculated on a larger amount. The core formula is A = P × (1 + r/n)nt, where P is the principal, r the annual rate, n the compounding frequency and t the years. Monthly contributions are added at the end of each month and compound from there.
Two things matter most: time and consistency. A 1% higher rate helps, but starting five years earlier — or adding €100 every month without fail — usually beats chasing the best rate. Frequency matters too: monthly compounding edges out annual compounding, though the gap is small at typical European savings rates.
Sofia in Madrid starts with €5,000, adds €200/month, earns 4% annually compounded monthly, for 10 years:
That €7,900 exists purely because the interest kept compounding instead of sitting idle.
Compound interest is interest earned on both your original deposit and on the interest already accumulated. Over time the growth accelerates — which is why starting early matters more than the exact rate.
Simple interest is calculated only on the original principal. Compound interest is calculated on principal plus accumulated interest, so the balance grows faster the longer you leave it invested.
More frequent compounding grows money slightly faster: monthly beats quarterly, which beats annually. The difference is small at low rates but meaningful over decades — this calculator lets you compare.
Typical advertised savings rates in 2026 range roughly 1.5–3% depending on the country — France's regulated Livret A sits near 3%, while standard accounts in Germany and the Netherlands are often around 1.5–2%. Rates change with ECB policy, so always check current offers.
Yes — what matters is the real return: nominal rate minus inflation. If your account pays 2% while inflation is 2.5%, your purchasing power shrinks slightly. This is why many savers combine safe accounts with long-term investing.
A common guideline is 20% of net income, but consistency beats size: €100 monthly for 30 years at 5% grows to over €80,000. Enter your own numbers above to see your personal trajectory.