Compound Interest Calculator
Understanding compound interest is key to building wealth. Use this interactive tool to project your savings growth based on monthly contributions and annual returns.
Calculator Inputs
Adjust the values to see your savings grow.
$10,000
$500
7%
10 Years
Projection
Growth over 10 years
Total Invested
$70,000
Future Value
$106,639
How It Works
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Or simply put, “interest on interest.”
The Formula
The standard formula for compound interest is:
A = P * (1 + r/n)^(nt)
Where:
- A = Final amount
- P = Initial principal balance
- r = Interest rate
- n = Number of times interest applied per time period
- t = Number of time periods elapsed
Key Takeaways
- Start Early: Time is the most powerful factor.
- Consistency Matters: Regular monthly contributions accelerate growth significantly.
- Rate of Return: Even small differences in interest rates have massive long-term effects.