Compound Interest Calculator
See how your money can grow with the power of compound interest
Investment Details
Investment Growth
Initial Investment
$10,000.00
Total Contributions
$12,000.00
Future Value
$32,911.62
Growth Over Time
Year-by-Year Breakdown
| Year | Starting Balance | Contributions | Interest | Ending Balance |
|---|
About Compound Interest
What is Compound Interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. It’s often called “interest on interest.”
The Power of Compounding
The more frequently interest is compounded, the greater your returns. This calculator shows how small regular contributions can significantly grow your investment over time.
Compound Interest Formula
A = P(1 + r/n)^(nt) + PMT * (((1 + r/n)^(nt) – 1) / (r/n))
Where: A = the future value of the investment
P = the principal investment amount
r = the annual interest rate (decimal)
n = number of times interest is compounded per year
t = the number of years
PMT = monthly contribution amount
Compound Interest Calculator — Description & Usage
What Is This Tool?
The Compound Interest Calculator helps users calculate the growth of an investment over time based on the principal amount, interest rate, and compounding frequency. It is ideal for investors, students, and financial planners to understand wealth growth.
- Calculate compound interest accurately for different time periods.
- Plan investments and savings efficiently.
- Visualize potential returns with compounding effects.
Why Use the Compound Interest Calculator?
Estimate how your savings or investments will grow over time with compounding interest.
Understand the impact of interest rates and compounding frequency on your returns.
How to Use This Tool (Step-by-Step)
- Enter the principal amount — the initial investment or savings.
- Enter the annual interest rate — the interest rate applied to the principal.
- Select the compounding frequency — e.g., annually, semi-annually, quarterly, monthly, or daily.
- Enter the investment period — the total duration of the investment in years.
- Click Calculate — the tool will show the total accumulated amount and interest earned.
Pro Tips for Best Results
- Use realistic interest rates for accurate projections.
- Compare different compounding frequencies to see their impact.
- Regularly update principal or interest if contributions change over time.
- Ideal for long-term financial planning and wealth accumulation.
Use the Compound Interest Calculator to understand the power of compounding and plan your investments wisely!