Compound Interest Calculator

See how your investments can grow over time with compound interest

Investment Details

$
$1,000$50,000$100,000
%
1%10%20%

Additional Contributions

$

Projection Results

Do you want to know the easiest way to determine the growth of your savings? There are few things more powerful than our Compound Interest Calculator, designed to help you estimate how your investment grows over time due to compound interest. Whether you're saving for retirement, building wealth, or preparing for your child's education, this Compound Interest Calculator provides a great visualization of your initial investment's impact on future wealth, interest rate, and contributions.

By entering simple information such as your initial investment, annual interest rate, compounding interval, and total contributions, our Compound Interest Calculator will show you instantly how your money compounds and multiplies over time. This free, simple to use tool is useful for investors, students, financial planners, and anyone who wants to understand the power of compounding.

Compound Interest Calculator

What Is Compound Interest?

Compound interest is one way to earn "interest on interest." Simple interest accumulates interest only on your original deposit, whereas compound interest grows exponentially over time because your original principal investment plus the interest earned on that principal plus interest earnings, all generate earnings.

Suppose you invest $10,000 at a 5% interest each year. But your money doesn’t just earn 5% of your original amount. Your current amount (which will include previously earned interest) earns interest every year, thereby increasing your earnings potential quickly.

Why Use a Compound Interest Calculator?

A Compound Interest Calculator allows you to plan your finances without guessing. After entering your numbers you can:

View how much interest you will earn over time.
You can calculate your Total balance in the future accurately.
Understand how frequency of contributions can impact growth.
Make better plans for long-term financial goals such as retirement or college funds.
Easily change time periods and interest rates to see various possibilities.
Know how even small investments will add up considerably with regular contributions.

Because our compound interest calculator is free, easy to use, and accurate, it is the go-to resource for both novice and experienced investors.

How to Use the Compound Interest Calculator

1.
Enter Your Initial Investment: Enter the starting investment amount.
2.
Set the Interest Rate: Enter the annual interest rate as a percentage.
3.
Select the Compounding Frequency: Choose the frequency the interest will compound (annually, monthly, quarterly, etc.) from the options.
4.
Choose the Investment Duration: Enter the number of years or months the money will be invested.
5.
Add Contributions: Enter any ongoing deposits to see how they affect the growth.
6.
Get Results Immediately: The tool will give you your total balance, interest accrued, and contributions in a simple and concise breakdown.

This Compound Interest Calculator is fully customizable and has instant results allowing you to toggle or experiment with different variables and strategies.

Advantages of Compounding

Compounding is an essential part of building wealth. Here are some of the key advantages:

Exponential Growth: Your money works harder for you year after year.
Time Leverage: The sooner you begin investing, the larger your returns will be.
Flexibility: Contributions and compounding periods can be modified for maximum growth.
Financial Clarity: You will have the necessary assurance of knowing exactly what to expect so you can make better financial decisions.

Using our Compound Interest Calculator often will help keep you on a dedicated path to achieving your savings goals.

Example Calculation

Let's say you invest $10,000 at 5% compounded annually, and you add $100 every year for 10 years:

Initial Investment: $10,000
Total Contributions: $1,000
Interest Earned: $6,547
Total Funds Value: $17,547

This simply demonstrates how compound interest allows your savings to grow in a more accelerated way than you might expect. Our Compound Interest Calculator makes these calculations easy!

The Compound Interest Calculator is an important, must-have tool for those committed to growing wealth. Our Calculator can help you assess compound interest in your future financial decision making, see how small dollar contributions compound, and plan for a long-term future. Give our free calculator a spin and see how fast your money can grow!

FAQs

A Compound Interest Calculator is an online calculator that can determine the future value of an investment taking into account compound interest, contributions, and frequency of compounding.

The more often interest compounds, the faster your money grows. For example, monthly compounding will generate more returns than annual compounding.

Yes! You can use the Compound Interest Calculator to project amounts owed for loans, but remember, loans are usually more complex, as they often come with fees and terms.

Compound interest is so powerful because your interest earns interest. The exponential growth of your investment results from the time element of compound interest.

Yes! We are pleased to provide a free, accurate, and available-for-use anywhere online calculator.

This Compound Interest Calculator uses standard financial formulas to provide accurate results. Actual results can vary because of market performance and fees.