Compound Interest Calculator

Estimate the future value of your savings or investments, including regular monthly contributions and the effect of compounding.

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How compound interest works

Compound interest is interest earned on both your original principal and the interest it has already generated. Because each period builds on the last, growth accelerates over time — the effect Einstein is often (apocryphally) said to have called the eighth wonder of the world.

The formula

The future value of a lump sum with regular contributions is FV = P(1+i)ⁿ + PMT·((1+i)ⁿ−1)/i, where i is the rate per period and n is the number of periods. This calculator applies it for you and separates how much you contributed from how much was pure growth.

Getting the most from compounding

Two levers matter most: time and consistency. Starting five years earlier often beats contributing more later, and automating a fixed monthly amount removes the temptation to skip. Small differences in annual rate also widen dramatically over decades.

Frequently asked questions

Does this account for monthly deposits?
Yes. Contributions are added each period and compounded along with your starting balance.
What interest rate should I use?
Historically, a diversified stock index has returned roughly 7% per year after inflation, but returns are never guaranteed. Use a conservative estimate for planning.
Is the result before or after tax?
It is a pre-tax, pre-inflation projection. Taxes on gains and rising prices will reduce real-world results.

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