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Compound Interest Calculator

Calculate compound interest growth over time

Investment Details

$

Starting amount to invest

$

Amount added each month

%

Expected annual return

years

Investment Growth

Enter investment details and click Calculate

Fill in the form to see your investment growth projection

The Power of Compound Interest

Compound interest is often called the "eighth wonder of the world" because of its ability to grow wealth exponentially over time. Unlike simple interest, compound interest earns interest on both your principal and previously earned interest.

The Formula

For compound interest with regular contributions:

A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]

Where: A = Final amount, P = Principal, r = Annual rate, n = Compounds per year, t = Years, PMT = Regular payment

Key Insights

  • Start early: Time is the most powerful factor in compound growth
  • Be consistent: Regular contributions amplify compounding
  • Reinvest returns: Let your interest earn interest
  • More frequent compounding: Slightly increases returns

Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.

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