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Compound Interest Calculator
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Future Value
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Principal
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Contributions
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Interest Earned
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Growth Breakdown
Initial Contributions Interest
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How to Use the Compound Interest Calculator
- Enter your initial investment amount
- Add any monthly contributions (optional)
- Enter the expected annual interest rate
- Set the investment time period in years
- Choose how often interest compounds
The Power of Compound Interest
- Start early - Time is the biggest factor in compound growth
- Stay consistent - Regular contributions accelerate growth
- Reinvest returns - Let dividends and interest compound
- Be patient - Compound growth accelerates over time
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Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It's 'interest on interest' and helps your money grow faster.
How is compound interest calculated?
A = P(1 + r/n)^(nt), where A is final amount, P is principal, r is annual rate, n is compounding frequency per year, and t is time in years.
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal. Compound interest is calculated on principal plus accumulated interest, resulting in faster growth over time.
How often should interest compound?
More frequent compounding (daily vs monthly vs annually) results in slightly higher returns. Daily compounding is best, but the difference is often small.