Pashut Neto

Compound Interest Calculator

Updated: July 2026

Per the Pashut Neto calculator, depositing ₪1,000 a month for 20 years at an average annual return of 7% grows to about ₪521,000 — of which only ₪240,000 is deposits and the rest is compound-interest gains.

0 works too

A fixed amount every month

An assumption for illustration, e.g. 7

Between 1 and 50 years

Pashut Neto · Result slipUpdated: July 2026

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Savings value at the end of the term

How is it calculated?

The calculation assumes a fixed monthly deposit and an average annual return, compounded monthly: each month the gain is computed on the principal plus all gains accumulated so far. That is the difference between simple and compound interest — and what produces the famous exponential curve.

The return you enter is an assumption, not a promise: markets are volatile, and long-term average returns differ from any single year's actual return. The calculation excludes capital-gains tax, management fees and inflation linkage — past returns do not guarantee future returns.

Frequently asked questions

What is compound interest?

Compound interest is a mechanism where gains join the principal and produce gains of their own. The effect is small at first, but over years it becomes the main driver of savings growth — which is why it is called the "eighth wonder".

What annual return is reasonable to assume?

The long-term historical return of broad stock indices is around 7%–9% a year before inflation; conservative tracks return less. Historical data is fact — but not a promise about the future.

Does the calculation include tax and management fees?

No. In Israel a 25% capital-gains tax applies to real gains on sale, and funds charge management fees. Both reduce the actual final amount.

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Sources

This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.