Plan your financial future with our free compound interest calculator
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 |
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.
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.
The more frequently interest is compounded (daily, monthly, quarterly, etc.), the more your investment will grow. Our calculator lets you compare different compounding frequencies.
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.
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.
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.
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.
Use our suite of financial calculators to make informed decisions about your investments, mortgage, retirement, and more.