Compound Interest Calculator
Calculate how your money grows with compound interest and regular contributions.
Future Value
$106,639.02
Total Contributed
$70,000.00
Total Interest Earned
$36,639.02
Interest Ratio
34.4%
Year-by-Year Breakdown
| Year | Balance | Total Deposits | Interest |
|---|---|---|---|
| 1 | $16,919.19 | $16,000.00 | $919.19 |
| 2 | $24,338.58 | $22,000.00 | $2,338.58 |
| 3 | $32,294.31 | $28,000.00 | $4,294.31 |
| 4 | $40,825.16 | $34,000.00 | $6,825.16 |
| 5 | $49,972.70 | $40,000.00 | $9,972.70 |
| 6 | $59,781.53 | $46,000.00 | $13,781.53 |
| 7 | $70,299.43 | $52,000.00 | $18,299.43 |
| 8 | $81,577.68 | $58,000.00 | $23,577.68 |
| 9 | $93,671.22 | $64,000.00 | $29,671.22 |
| 10 | $106,639.02 | $70,000.00 | $36,639.02 |
Compound Interest Calculator
Calculate compound interest on savings and investments. See how your money grows over time with monthly or yearly compounding. Free financial calculator.
How It Works
Enter the initial principal amount, annual interest rate, compounding frequency, and time period. The calculator shows the total amount, total interest earned, and a year-by-year growth chart showing how your money compounds over time.
Common Use Cases
- Estimating how much your savings will grow over 5, 10, or 20 years
- Comparing different investment options by interest rate and compounding frequency
- Understanding the power of compound interest for retirement planning
- Calculating the future value of a fixed deposit or CD
Frequently Asked Questions
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This 'interest on interest' makes your money grow exponentially.
The Rule of 72 is a quick way to estimate how long it takes to double your money: divide 72 by the annual interest rate. For example, at 8% interest, your money doubles in roughly 9 years.
Daily compounding yields slightly more than monthly compounding at the same rate, because interest is calculated and added to the principal more frequently.
Simple interest is calculated only on the principal (e.g., 5% on $1000 = $50/year always). Compound interest is calculated on principal + accumulated interest, so you earn interest on interest.
Yes, enter a recurring monthly contribution amount. The calculator shows how regular additions significantly boost your final amount through the power of compounding.
Continuous compounding calculates interest infinitely many times per period using the formula A = Pe^(rt). It yields slightly more than daily compounding and represents the theoretical maximum.
Inflation reduces the real (purchasing power) return. If your investment earns 7% but inflation is 3%, your real return is approximately 4%. Consider inflation-adjusted returns in planning.