Compound Interest Calculator
Discover the power of compound interest and see how your money can grow over time with regular contributions
How it works: This calculator shows how your investments can grow through compound interest, where you earn returns not only on your initial investment but also on your accumulated interest.
Quick Start Scenarios
Customize Your Growth Plan
Investment Amount
Time Frame
Understanding Time Frames: You can contribute for part of the investment period and let compound growth do the rest. For example: contribute for 10 years, then let it grow for another 10 years without new contributions.
Growth Settings
Rate Guidelines: Conservative (3-5%), Moderate (6-8%), Aggressive (9-12%). Higher returns typically come with higher risk. Monthly compounding is most common for investment accounts.
Your Growth Summary
Growth Over Time
Year-by-Year Breakdown
Note: This table shows how your investment grows year by year with complete yearly breakdown and detailed formulas for each calculation.
How YoY Growth Rate is Calculated: Growth Rate = (Current Year Balance - Previous Year Balance) ÷ Previous Year Balance × 100. This includes both interest earned and new contributions, which is why it's often higher than your interest rate in early years.
| Year |
Annual Contributions Added This Year |
Interest Formula Balance × Rate |
Balance Formula Previous + Contributions + Interest |
Growth Formula (Current - Previous) ÷ Previous × 100 |
|---|
Key Insights About Your Plan
Understanding Compound Interest
The Power of Time
Compound interest is often called the "eighth wonder of the world." The longer you invest, the more dramatic the effect. Even small amounts can grow substantially over decades.
Regular Contributions Matter
Consistent monthly contributions can often outweigh a large initial investment. The key is to start early and remain consistent, regardless of market conditions.
The Rule of 72
Divide 72 by your annual return rate to estimate how many years it takes to double your money. At 7%, your money doubles roughly every 10 years.
Compounding Frequency
While more frequent compounding helps slightly, the biggest factors are your rate of return, time invested, and regular contributions.
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