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Compound Interest
Calculator

See how your savings grow with compound interest, monthly contributions, and reinvested returns over time.

Compound Growth

Set your growth scenario

$
Lump sum
$
Each month
%
S&P 500 avg ~10%
yr
That's the year 2056

Total Contributed

$37,000.00

Interest Earned

+$186,733.73

Final Value

$223,733.73

Multiplier

6.05x

Compound Growth Projection

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Balance
Contributions

Based on fixed annual returns compounded monthly. Actual returns vary. Not financial advice.

How Compound Interest Works

The Compound Interest Formula

Compound interest calculates returns on both your principal and previously earned interest, creating exponential growth over time.

Formula: A = P(1 + r/n)nt

P = principal · r = annual rate · n = compounds/year · t = years

The Power of Monthly Contributions

Adding regular monthly contributions dramatically increases your final balance. Each contribution earns its own compound returns from the date it's deposited.

Example: $1,000 + $100/mo at 10% for 30 years

Final value: $223,734 · Interest earned: $186,734

Rule of 72

A quick way to estimate how long it takes to double your money: divide 72 by the annual return rate. This gives you the approximate number of years to double.

At 10%: 72 ÷ 10 = ~7.2 years to double

At 7%: 72 ÷ 7 = ~10.3 years to double

Frequently Asked Questions

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest (calculated only on the principal), compound interest grows exponentially over time because you earn "interest on interest." This is why Albert Einstein reportedly called it the "eighth wonder of the world."

See Real Results

See how compound growth has played out in real investments over the years.