Investment Calculator

Estimate your investment growth over time using compound interest and contributions.

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Compound Interest Calculator

Calculate how your investments grow over time with compound interest and regular contributions.

Compound Interest Calculator

Compounding Frequencies

Annually
Once per year
Semi-Annually
Twice per year
Quarterly
Four times per year
Monthly
Twelve times per year
Daily
365 times per year

Quick Examples

$10,000 initial, 7% annually
30 years: ~$76,123
$500/month, 8% monthly
20 years: ~$294,510

About Compound Interest

Compound interest is the interest earned on both the initial principal and the accumulated interest from previous periods. This creates exponential growth over time, making it one of the most powerful concepts in investing.

Compound Interest Formula

A = P(1 + r/n)^(nt)
Where: A = Future value, P = Principal, r = Annual interest rate, n = Compounding frequency, t = Time in years

Key Concepts

Principal

The initial amount of money invested or borrowed. This is the base amount that earns interest.

Interest Rate

The percentage rate at which interest is earned or charged, typically expressed annually.

Compounding Frequency

How often interest is calculated and added to the principal. More frequent compounding means faster growth.

Time Period

The length of time the money is invested. Compound interest works best over longer periods.

The Power of Compound Interest

Compound interest is often called the "eighth wonder of the world" because of its exponential growth:

  • • Early years: Growth appears slow, mostly principal
  • • Middle years: Interest starts to accelerate
  • • Later years: Explosive growth, mostly interest
  • • Rule of 72: Divide 72 by your interest rate to find doubling time

Regular Contributions

Adding regular contributions to compound interest creates even more powerful results:

  • • Dollar-cost averaging: Invest regularly regardless of market conditions
  • • Compound growth on contributions: Each contribution also earns interest
  • • Habit formation: Regular investing becomes automatic
  • • Time in market: More important than timing the market

Investment Strategies

  • • Start early: Time is your greatest ally in compound interest
  • • Invest consistently: Regular contributions amplify growth
  • • Reinvest dividends: Let your earnings compound
  • • Diversify: Spread risk across different investments
  • • Stay invested: Avoid emotional decisions based on market fluctuations
  • • Consider tax-advantaged accounts: IRAs, 401(k)s, etc.

Frequently Asked Questions

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