Compound Interest Calculator

See how your investment grows over time

Projected Results

Future Value $20,096.61
Interest Earned $7,096.61
Total Contributions $12,000.00

Year-by-Year Breakdown

Year Starting Balance Contributions Interest Ending Balance

How Compound Interest Can Multiply Your Money – Use Our Free Calculator

Compound interest is often called the "eighth wonder of the world" for its ability to grow money exponentially over time. Unlike simple interest (which only earns returns on your initial deposit), compound interest earns returns on both your principal and accumulated interest. This snowball effect can turn modest savings into substantial wealth—if you give it enough time.

The Power of Compound Interest

Consider this eye-opening comparison:

  • Simple Interest: $1,000 at 8% for 10 years = $1,800 ($80/year)
  • Compound Interest: $1,000 at 8% for 10 years = $2,159 (compounded annually)

The difference becomes even more dramatic over longer periods. That same $1,000 investment would grow to $4,661 in 20 years and $21,725 in 40 years—without adding another dollar!

Why Use Our Compound Interest Calculator?

Our free compound interest calculator helps you visualize this growth with precision:

📊 Instant Projections

See how different interest rates or time horizons affect your returns in seconds.

💰 Contribution Planning

Test how regular deposits (like monthly savings) accelerate your growth.

📅 Year-by-Year Breakdown

Understand exactly when your money starts working hardest for you.

Whether you're saving for retirement, education, or a big purchase, this investment tool removes the guesswork from financial planning.

Real-Life Applications

Our financial calculator can help with:

  • Retirement: See how starting early impacts your nest egg (a 25-year-old investing $300/month at 7% would have $1.1M by age 65)
  • Debt Management: Understand how compounding works against you with credit cards or loans
  • Goal Setting: Calculate exactly how much to save for a down payment or vacation fund

Try It Yourself

Scroll up to use our interactive compound interest calculator—no math skills required! Experiment with different scenarios:

  • What if you started 5 years earlier?
  • How does a 1% higher return change the outcome?
  • What's the impact of adding $50/month?

Pro Tip: Bookmark this page to revisit your calculations as your goals evolve.