Compound Interest Calculator | Investment Growth Calculator
Calculate how your investments grow over time with our compound interest calculator. See the impact of regular contributions and different compounding frequencies.
Category: Financial
Future Value
$19,902
After 10 years
- Initial Principal
- Additional Contributions
- Interest Earned
Initial Principal
$10,000
Additional Contributions
$24,000
Interest Earned
-$14,098
Total Contributions
$34,000
Growth Over Time
- Total Value
- Principal Only
- Initial Principal
Components Breakdown
- Initial Principal
- Additional Contributions
- Interest Earned
Frequently Asked Questions
What is compound interest?
Compound interest is when you earn interest on both the money you've saved and the interest you earn. Over time, this can significantly increase your investment through the power of compounding.
How is compound interest calculated?
The basic formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial investment), r is the annual interest rate (decimal), n is the number of times interest is compounded per year, and t is the time in years.
How does compounding frequency affect investment growth?
The more frequently interest is compounded (daily vs. monthly vs. annually), the more your money will grow over time. However, the difference becomes less significant with lower interest rates.
Why are regular contributions important for compound interest?
Regular contributions accelerate growth by continually adding to the principal amount that earns interest. This creates a powerful snowball effect, especially over longer timeframes.