Compound Interest Calculator
Calculate how your investments grow with compound interest and recurring contributions over time.
Scenario 1
Scenario 1 Results
Investment Growth Over Time
Scenario 1 Summary
Compound Interest Calculator FAQ
What is compound interest?
Compound interest is the process where your investment earns interest on both the initial principal and the accumulated interest from previous periods. This leads to exponential growth over time.
How does this calculator work?
Enter your initial investment, recurring contributions (monthly or yearly), annual interest rate, compounding frequency, and investment period. The calculator instantly shows your final balance, total contributions, and total interest earned. You can also compare two different scenarios side-by-side.
Example Calculation
Suppose you invest $10,000 as your initial deposit, add $200 every monthly, at an annual interest rate of 5%, for 10 years with monthly compounding.
- Final Balance: $47,527
- Total Contributions: $24,000
- Total Interest Earned: $13,527
What is the formula used?
The formula for compound interest with regular contributions is:Final Balance = P × (1 + r/n)nt + d × [((1 + r/n)nt - 1) / (r/n)]Where:
P = initial principal ($10,000)
r = annual interest rate (5%)
n = compounding periods per year (12)
t = number of years (10)
d = regular deposit per period ($200 per monthly)
What do the results mean?
- Final Balance: The total value of your investment at the end of the period.
- Total Contributions: The sum of all your deposits (excluding interest).
- Total Interest Earned: The amount your money grew due to compounding.
- Growth Chart: Visualizes your investment growth over time.
Can I compare two investment scenarios?
Yes! Enable the Compare Scenarios toggle to input a second set of parameters and instantly see the difference in outcomes.
What are some common uses for this calculator?
- Planning for retirement, college, or major purchases
- Comparing different investment strategies
- Understanding the power of compound interest
What search terms does this calculator target?
- Compound interest calculator
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Is this calculator free?
Yes! Our calculator is 100% free and easy to use.
Can I share my results?
Yes! All your inputs are synced to the URL, so you can share or bookmark your custom scenario.
How accurate is this calculator?
We use the industry-standard formula for compound interest with regular contributions. Results are for educational purposes and may differ from actual investment returns due to fees, taxes, or market fluctuations.
Want to see how your money can grow?
Try different values above and see instant results!