📈 Compound Interest Calculator

See how your savings and investments grow with the power of compound interest.

⚠️ Disclaimer: This calculator provides hypothetical estimates based on constant returns. Actual investment performance will vary. Past performance does not guarantee future results. Consult a financial advisor for investment decisions.

Initial Deposit ($)

Monthly Contribution ($)

Annual Return Rate (%)

Time Period (years)

Compound Frequency

Future Value

Total Contributions

Total Interest Earned

Understanding Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Albert Einstein reportedly called it "the eighth wonder of the world."

The formula used is: A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Start early: The earlier you start saving, the more time compounding has to work.
Be consistent: Regular contributions dramatically amplify the compounding effect.
Higher frequency: More frequent compounding (e.g., daily vs yearly) yields slightly higher returns.

Reference: SEC Investor.gov