Investment Calculator

Plan your financial future with our free compound interest calculator

Calculate Your Investment

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Investment Results

Future Value

$19,351.43

Total Contributions

$13,000.00

Total Interest Earned

$6,351.43

Year Contributions Interest Balance
1 $2,200.00 $89.18 $2,289.18
2 $3,400.00 $289.11 $3,689.11
3 $4,600.00 $602.83 $5,202.83

How Compound Interest Works

The Power of Compounding

Compound interest is when you earn interest not only on your initial investment but also on the interest you've already earned. This creates a snowball effect that accelerates wealth growth over time.

Time Is Your Friend

The longer your money stays invested, the more powerful compounding becomes. Starting early, even with smaller amounts, can lead to significantly larger returns than waiting to invest larger amounts later.

Frequency Matters

The more frequently interest is compounded (daily, monthly, quarterly, etc.), the more your investment will grow. Our calculator lets you compare different compounding frequencies.

Frequently Asked Questions

What is compound interest?

Compound interest is the interest calculated on the initial principal and also on the accumulated interest over time. This means your investment earns interest on interest, not just on your original deposit.

How much should I invest monthly?

The amount you should invest monthly depends on your financial goals, time horizon, and budget. Use our calculator to experiment with different monthly contribution amounts to see how they affect your long-term results.

What interest rate should I use for my calculations?

For long-term stock market investments, 7-10% is often used as an estimate based on historical averages. For savings accounts or CDs, use current rates offered by financial institutions. For more conservative estimates, consider using lower rates.

What's the difference between simple and compound interest?

Simple interest is calculated only on the initial principal amount. Compound interest is calculated on both the principal amount and the accrued interest over time, resulting in exponential growth rather than linear growth.

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