Results are estimates for illustration only and not financial, tax, or investment advice. Verify with a qualified, registered advisor before making decisions.
Compound Interest Calculator
Visualize the power of compounding with regular contributions.
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About Compound Interest
Compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
Definition: Compound Interest
Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.
Inputs and Outputs
Required Inputs
- Initial InvestmentThe starting principal amount.
- Monthly ContributionAdditional amount added every month.
- Interest Rate (%)The annual interest rate.
- Time Period (Years)The duration of the investment.
- Compound FrequencyHow often interest is compounded (Annually, Monthly, etc.).
Expected Outputs
- Total PrincipalThe sum of initial investment and all contributions.
- Total InterestThe total interest earned.
- Total BalanceThe final maturity amount.
Who Uses the Compound Interest?
Savings Growth
See how regular savings can snowball into a large corpus over time.
Investment Comparison
Compare different investment options based on compounding frequency.
How to Use the Compound Interest
- 1Enter your initial principal amount.
- 2Add any regular monthly contributions.
- 3Set the expected interest rate and investment duration.
- 4Choose the compounding frequency (e.g., Monthly or Annually) to see the results.
Quick Facts
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Frequently Asked Questions
How does compounding frequency affect returns?
More frequent compounding (e.g., daily or monthly instead of annually) results in higher total interest earned over time.
What is the Rule of 72?
A quick formula to estimate the number of years required to double your money at a given annual rate of return (Years = 72 / Interest Rate).