Finance

Compound Interest Calculator

Calculate compound interest growth over time with different compounding periods

$
$
%
yrs
Future Value
$0
Total contributions $0
Total interest earned $0
Return on investment 0%
How to Use
  1. Enter your Initial Investment (lump sum).
  2. Add a Monthly Contribution if you plan to contribute regularly.
  3. Set the Annual Interest Rate (e.g., 7% for stock market average).
  4. Choose the Time Period in years.
  5. Select how often interest is compounded (daily, monthly, annually).

Formula

A = P(1 + r/n)^(nt) + PMT × [(1 + r/n)^(nt) − 1] / (r/n)
A Future value (ending balance)
P Principal (initial investment)
r Annual interest rate (decimal)
n Compounding frequency per year
t Time in years
PMT Regular payment (monthly contribution)

Understanding how your investments grow over time is crucial for financial planning. Compound interest accelerates the growth of your savings by earning interest on both the initial principal and the accumulated interest from previous periods. Over long periods, this compounding effect can lead to exponential financial growth. For more information on the mathematics behind this, read about Compound Interest on Wikipedia.