Compound Interest Calculator
How to Use This Compound Interest Calculator
This free compound interest calculator helps you project the future value of your investments by factoring in recurring contributions and the power of compounding. It’s a simple yet powerful tool for anyone looking to plan long-term savings or retirement goals.
How It Works:
- Initial Investment – Enter the lump sum you’re starting with.
- Monthly Contribution – Input how much you plan to add each month.
- Length of Time – Choose the number of years you want to invest for.
- Estimated Annual Interest Rate – Enter your expected annual return rate.
- Interest Rate Variance Range (Optional) – See how different rates might impact your outcome.
- Compound Frequency – Select how often interest compounds (monthly, quarterly, annually, etc.).
After clicking “Calculate”, the calculator shows your projected total balance. For example, with a $1,000 initial investment, $10 added monthly, a 7% annual return, and quarterly compounding over 30 years, you’ll end up with $12,935.68.
Visualizing the Power of Compounding:
The chart below compares:
- Compound Interest Growth (in blue)
- Straight Savings with No Interest (in gray)
As you can see, compound growth accelerates significantly over time, highlighting the importance of starting early and staying consistent.
Use this calculator to explore different saving strategies and understand how small monthly contributions can lead to big results over time—especially when compound interest is working in your favor.
You can check out the rest of our calculators here!