Compound growth with regular contributions, tax-free.
Future value
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Total contributed
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Interest earned (tax-free)
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Your breakdown
Updates live as you type
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Amount (HKD)
Worked example
Start with HK$100,000, add HK$5,000 every month, and compound monthly at 5 percent a year for 20 years. The monthly rate is 5 percent divided by 12, applied over 240 months. The starting HK$100,000 grows on its own to about HK$271,264, while the stream of HK$5,000 deposits grows to about HK$2,055,168, giving a future value near HK$2,326,432. Over those 20 years you actually paid in HK$100,000 plus HK$5,000 times 240, which is HK$1,300,000. The difference, about HK$1,026,432, is compound interest, and because Hong Kong levies no tax on personal interest or investment gains, the full balance is yours to keep.
How it is calculated
Compound growth has two parts that are added together. The lump sum grows by the formula principal times one plus the periodic rate, raised to the number of periods, so it earns interest on past interest. The regular contributions grow as an annuity, where each deposit compounds for the time remaining until the end. More frequent compounding produces slightly more growth because interest is credited and starts earning sooner, which is why monthly beats annual at the same headline rate. The rate you enter is a nominal annual rate that the tool divides across the periods. Hong Kong has no interest tax, savings tax or capital gains tax for individuals, so unlike many countries the interest shown is not reduced by withholding, and the future value is the full pre-tax and post-tax figure at once.
Frequently asked questions
Is interest taxed in Hong Kong?
Interest from a Hong Kong savings account or deposit is not taxed for an individual, as Hong Kong has no interest or savings tax. So the interest this calculator shows is yours to keep in full. The future value comes from compounding your starting balance and your monthly contributions at the rate you enter, with more frequent compounding producing slightly more growth.
What compounding frequency should I choose?
Most Hong Kong savings accounts and time deposits credit interest monthly, so monthly compounding matches the actual product most closely. Quarterly compounding is common for some fixed deposits. Annual compounding slightly understates the real return when interest is credited more often, because interest credited earlier starts earning sooner.
How does this calculator treat monthly contributions?
The calculator treats your monthly contribution as a regular end-of-period payment made every month throughout the investment period. When you select quarterly or annual compounding, the tool converts the monthly amount into an equivalent per-period contribution so the math stays consistent with the chosen frequency. The total contributed figure always reflects the full monthly amount multiplied by the number of months.
Are capital gains or investment returns taxed in Hong Kong?
Hong Kong does not impose capital gains tax, savings tax, or a general investment income tax on individuals. Returns from shares, unit trusts, bonds, and savings accounts are not subject to Salaries Tax or Profits Tax for individuals who are not carrying on a trade. This means the future value shown in the calculator is both the gross and net figure for most Hong Kong residents.