FinWiseGuru

Compound Interest Calculator

Calculate investment growth with compound interest and regular contributions.

USD
USD
%
years

Future value

$125,510.22

Total invested

$58,000.00

Regular contributions: $48,000.00

Interest earned

$67,510.22

Projected growth

Projected growth

Contributions compared with earned interest

ContributionsInterest earned

Year-by-year projection

YearInvestedInterest earnedBalance
0$10,000.00$0.00$10,000.00
1$12,400.00$683.89$13,083.89
2$14,800.00$1,557.99$16,357.99
3$17,200.00$2,634.03$19,834.03
4$19,600.00$3,924.46$23,524.46
5$22,000.00$5,442.51$27,442.51
6$24,400.00$7,202.21$31,602.21
7$26,800.00$9,218.48$36,018.48
8$29,200.00$11,507.14$40,707.14
9$31,600.00$14,084.97$45,684.97
10$34,000.00$16,969.84$50,969.84
11$36,400.00$20,180.66$56,580.66
12$38,800.00$23,737.54$62,537.54
13$41,200.00$27,661.83$68,861.83
14$43,600.00$31,976.19$75,576.19
15$46,000.00$36,704.68$82,704.68
16$48,400.00$41,872.83$90,272.83
17$50,800.00$47,507.78$98,307.78
18$53,200.00$53,638.30$106,838.30
19$55,600.00$60,294.96$115,894.96
20$58,000.00$67,510.22$125,510.22

This estimate assumes a constant interest rate and does not include taxes, fees, inflation, or changing market returns. It is for educational purposes only.

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Use this compound interest calculator to estimate how an initial investment and recurring monthly contributions may grow over time. Change the interest rate, duration, compounding frequency, and contribution timing to compare scenarios.

What is compound interest?

Compound interest is interest earned on both the original principal and previously accumulated interest. When interest remains invested, future interest can be earned on a growing balance.

How is compound interest calculated?

For an initial deposit without additional contributions, the standard formula is A = P(1 + r/n)^(nt). P is the initial principal, r is the annual nominal interest rate as a decimal, n is the compounding periods per year, and t is the number of years.
With monthly contributions, the result also depends on when each contribution is added and begins earning interest. This calculator models monthly cash flows using a monthly rate consistent with the selected annual compounding frequency.

What affects investment growth?

  • Initial investment: the amount deposited at the start.
  • Monthly contribution: additional money invested each month.
  • Annual interest rate: the assumed nominal annual rate.
  • Compounding frequency: how often interest is compounded.
  • Investment duration: how long the money remains invested.

Frequently asked questions

Does this calculator include monthly contributions?

Yes. Enter a monthly contribution and select whether it is added at the beginning or end of each month.

What is the difference between simple and compound interest?

Simple interest is calculated on the original principal. Compound interest can also be earned on interest accumulated earlier.

Are the projected returns guaranteed?

No. The calculation assumes a constant rate. Actual returns may vary, and taxes, fees, inflation, and market changes are not included.

How often should interest be compounded?

That depends on the account or investment terms. More frequent compounding can increase the effective annual rate for the same positive nominal rate, but real products may have different rules and fees.