What is compound interest?
Compound interest is interest calculated on both the initial principal and accumulated interest. Unlike simple interest, compound interest 'snowballs' - each period's interest earns interest in future periods.
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Compound Interest Calculator
Calculate compound interest with interactive growth charts. See contribution breakdowns and compare scenarios visually.
About Compound Interest Calculator
Calculate compound interest with interactive growth charts, contribution breakdowns, and scenario comparisons.
The Compound Interest Calculator shows how your money grows over time through the power of compounding. Input your principal, interest rate, and time period to see detailed growth projections with interactive charts. Compare different scenarios to understand how rate changes, contribution amounts, and compounding frequency affect your wealth growth.
How to use Compound Interest Calculator
Enter your initial investment (principal), annual interest rate, investment period, and optional regular contributions. The calculator shows year-by-year growth with an interactive chart, breaking down principal, interest earned, and total contributions.
Compound Interest Calculator example
Invest $10,000 at 7% annual return for 20 years with $200 monthly contributions. Your total grows to approximately $130,000 - that's $58,000 in principal and $72,000 in compound interest earned.
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Helpful questions
How often should interest compound?
More frequent compounding yields more growth. Daily compounding earns slightly more than monthly, which earns more than annually. For most savings accounts and investments, the difference between daily and monthly is small.
What's the Rule of 72?
The Rule of 72 estimates how long it takes to double your money. Divide 72 by the annual interest rate: at 8%, money doubles in about 9 years (72/8). It's a quick mental math shortcut.
Does this account for inflation?
The basic calculation uses nominal returns. For real (inflation-adjusted) returns, subtract the expected inflation rate from your interest rate. A 7% return with 3% inflation yields ~4% real return.