Compound Interest Calculator
Calculate how your investments grow over time
What Is Compound Interest?
Compound interest is the interest earned on both the initial principal and the accumulated interest from previous periods. It's the power of earning interest on interest, which can significantly grow your investments over time.
How to Use
- Enter your initial investment amount
- Enter your monthly contribution (optional)
- Enter the annual interest rate
- Enter the time period in years
- Click "Calculate" to see your results
Example
Sarah's Investment
Initial Investment: $10,000
Monthly Contribution: $500
Annual Rate: 8%
Time Period: 10 years
Final Balance: $108,000
Total Interest: $38,000
FAQs
What is compound interest?
Compound interest is interest earned on both the principal and previously earned interest.
How often is interest compounded?
This calculator assumes annual compounding. Different compounding frequencies will affect results.
Is this calculator accurate?
Yes, it uses the standard compound interest formula for accurate results.