Compound Interest Calculator

Calculate investment growth over time

How to Use

1

Enter initial investment

Input your starting amount or current savings.

2

Add monthly contribution

Enter how much you plan to add each month (optional).

3

Set rate and duration

Enter expected annual return rate and investment period in years.

4

View growth projection

See your final balance, total contributions, and interest earned with year-by-year breakdown.

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 allows your money to grow exponentially over time.

How does compound frequency affect my returns?

More frequent compounding (monthly vs annually) results in slightly higher returns because interest starts earning interest sooner. The difference is more significant with higher interest rates.

What is a realistic annual return rate?

Historical stock market returns average around 7-10% annually after inflation. Savings accounts typically offer 0.5-5%. High-yield bonds may offer 5-8%.

Is this calculator accurate for retirement planning?

This provides a good estimate, but real returns vary year to year. For serious retirement planning, consider using specialized tools that account for inflation and variable returns.

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