Compound Interest Calculator

See how your money grows with compound interest over time, including regular contributions.

Investing & Savings

Enter values and click Calculate to see results

How it works

The formula

Future value = P(1 + r/n)^(nt) for the initial sum, plus the annuity formula PMT x ((1 + monthly rate)^(12t) - 1) / monthly rate for monthly contributions.

FAQ

What does compounding mean?

Earning interest on your interest. $10,000 at 7% becomes $1,070 in year one, then earns 7% on $10,700 in year two — the growth accelerates every year without you adding a cent.

Why do contributions matter as much as returns?

Over a 20-year horizon, monthly contributions typically produce most of the final balance, with the initial sum a smaller share. Starting early and contributing steadily beats waiting for a bigger lump sum.

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