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Compound Interest Calculator

Discover the power of compounding. Calculate how your investments or savings grow over time with daily, monthly, or yearly compounding and regular contributions.

Investment Details
Enter your initial investment and contribution details to see your future wealth

Regular Contributions

Future Value

$106,639.02

Total Principal

$10,000.00

Total Contributions

$60,000.00

Total Interest Earned

+$36,639.02

The Compound Interest Formula

The formula for annual compound interest, including regular contributions, is:

A = P(1 + r/n)^(nt) + PMT * [((1 + r/n)^(nt) - 1) / (r/n)] * (1 + r/n)
  • A: Future value of the investment
  • P: Initial principal (initial investment)
  • r: Annual interest rate (decimal)
  • n: Number of times interest is compounded per year
  • t: Number of years the money is invested
  • PMT: Regular contribution amount
Tips for Maximizing Growth
  • 1

    Start as early as possibleโ€”time is the most important factor in compounding.

  • 2

    Increase the frequency of compounding to earn more interest over time.

  • 3

    Consistent regular contributions, even small ones, significantly boost future value.

  • 4

    Keep your interest rate competitive by comparing different savings products.

  • 5

    Avoid withdrawing the interest to allow it to compound fully.

  • 6

    Consider the impact of inflation on your future purchasing power.

Features

Accurate Results

Precise calculations based on standard compound interest formulas used by financial institutions.

Multiple Frequencies

Support for daily, monthly, quarterly, and yearly compounding to match your bank's terms.

Visual Growth

Dynamic breakdown showing how principal, interest, and contributions contribute to your total wealth.

Yearly Growth Schedule
See how your investment grows year by year
YearYearly ContributionsInterest EarnedTotal InterestEnd Balance
1$6,000.00$919.19$919.19$16,919.19
2$6,000.00$1,419.38$2,338.58$24,338.58
3$6,000.00$1,955.73$4,294.31$32,294.31
4$6,000.00$2,530.85$6,825.16$40,825.16
5$6,000.00$3,147.55$9,972.70$49,972.70
6$6,000.00$3,808.82$13,781.53$59,781.53
7$6,000.00$4,517.90$18,299.43$70,299.43
8$6,000.00$5,278.24$23,577.68$81,577.68
9$6,000.00$6,093.55$29,671.22$93,671.22
10$6,000.00$6,967.79$36,639.02$106,639.02

Growth Breakdown

1

Initial Investment

Enter starting amount (Annual Interest Rate (%), Duration (Years)).

2

Compounding Frequency

Daily, Monthly, Quarterly, Semi-annually, Annually

3

Regular Contributions

Contribution Amount โ€” Beginning of Period / End of Period.

4

Yearly Growth Schedule

See how your investment grows year by year (Download Schedule).

What is Compound Interest?

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Thought to have originated in 17th-century Italy, compound interest can be thought of as 'interest on interest,' and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding, such that the higher the number of compounding periods, the greater the compound interest.

FAQ

Frequently Asked Questions

How does compounding frequency affect my savings?
The more frequently interest is compounded, the more interest you earn. For example, daily compounding earns slightly more than monthly compounding on the same annual rate.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus any interest already earned.
How do regular contributions help?
Regular contributions increase the principal amount that interest is calculated on, leading to an exponential increase in growth over long periods.