See how your money can grow with the power of compound interest
$10,000.00
$12,000.00
$32,911.62
| Year | Starting Balance | Contributions | Interest | Ending Balance |
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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 more frequently interest is compounded, the greater your returns. This calculator shows how small regular contributions can significantly grow your investment over time.
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
Our free compound interest calculator shows you how your investments can grow exponentially over time through the power of compounding. Calculate future value, total interest earned, and watch your wealth accumulate with detailed year-by-year projections.
Understand why Albert Einstein called compound interest the "eighth wonder of the world" and how starting early can dramatically impact your long-term wealth. Perfect for savings planning, investment analysis, and retirement planning.
See your money grow with interactive charts and year-by-year breakdowns that illustrate the power of compounding over time.
Calculate with daily, monthly, quarterly, semi-annual, or annual compounding to match your actual investment products.
Include monthly or annual contributions to see how consistent investing accelerates your wealth accumulation.
Learn key concepts like the Rule of 72 and understand why time is your greatest ally in wealth building.
See how small, consistent investments can grow into substantial wealth over time through the magic of compound interest.
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. Essentially, it's "interest on interest" which causes your wealth to grow exponentially over time rather than linearly.
The more frequently interest compounds, the faster your money grows. Daily compounding yields slightly higher returns than monthly, which is better than annual compounding, due to interest being calculated on updated balances more frequently.
The Rule of 72 is a simple way to estimate how long it takes for an investment to double: Divide 72 by your annual interest rate. For example, at 6% interest, your money doubles in approximately 12 years (72 รท 6 = 12).
Extremely important! Starting early gives your money more time to compound. Someone who invests $200 monthly starting at age 25 will often accumulate more wealth than someone who invests $400 monthly starting at age 35, despite contributing less total money.
Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus accumulated interest. Over time, compound interest generates significantly higher returns due to this snowball effect.