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Compound interest calculator

Project the growth of any starting amount plus monthly contributions at a given annual rate. Compounded monthly.

KES
KES
%
years

Result

Final balance

KES 2,319,154

Total contributed

KES 1,300,000

Interest earned

KES 1,019,154

Why compounding matters

Compound interest means interest earned on interest. The longer the time horizon, the more aggressively the curve bends upward. A KES 100,000 lump sum at 10% per annum, compounded monthly, becomes roughly KES 271,000 in 10 years and KES 736,000 in 20 years. The second 10 years grows the balance by 2.7x even though it is the same time span as the first.

Kenyan rate benchmarks for 2026

  • M-PESA M-Shwari: 6 to 7% per annum
  • Bank savings accounts: 4 to 8%
  • Money market funds: 9 to 15%
  • Top SACCOs (dividend yield): 8 to 14%
  • Treasury bills: 12 to 16%
  • Treasury bonds: 13 to 18% (longer terms)
  • NSE equity (long-term historical): 10 to 15%

Frequently asked

What does "compounded monthly" mean?

Interest is calculated and added to the balance every month, then next month's interest is calculated on the new larger balance. This is the standard for Kenyan savings products. Some products compound daily (slightly higher returns) or annually (slightly lower).

What rate should I use for long-term investing?

For Kenyan equities long-term, 10 to 12% is a reasonable historical assumption. For money market funds, 10 to 12% reflects 2026 yields. For pessimistic planning, use 7%.

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