Results
Future Value: –
Total Contributions: –
Total Interest Earned: –
📘 Overview: Understand the Power of Compounding
The Compound Interest Calculator helps you estimate the future value of your investments or savings based on your initial deposit, regular contributions, interest rate, and compounding frequency.
Whether you're saving for retirement, building a college fund, or investing for long-term goals, this tool shows how your money can grow exponentially over time.
- 💰 Supports monthly, quarterly, or annual contributions
- 📅 Flexible compounding frequency (daily to yearly)
- 📈 Instant breakdown of total contributions vs. interest earned
🧮 Formula & Methodology
The calculator uses the compound interest formula with periodic contributions:
A = P × (1 + r/n)nt + PMT × [((1 + r/n)nt - 1) ÷ (r/n)]
- A = Future value of investment
- P = Initial principal
- r = Annual interest rate (as a decimal)
- n = Compounding frequency per year
- t = Total years invested
- PMT = Recurring contribution per period
If no contributions are made, the second term is excluded, and the future value is calculated using only the initial principal.
📊 Examples
Here are some example scenarios:
- 💵 $5,000 at 5% interest, compounded monthly for 10 years with $100/month → ≈ $194,573.78
- 💶 €2,322.37 at 3%, compounded quarterly for 5 years with no contributions → ≈ €2,319.61
- 💷 £10,000 at 7%, compounded yearly for 20 years + £500/year contribution → ≈ £59,194.59
These examples illustrate how regular contributions and frequent compounding significantly accelerate growth.
💡 Use Cases
- 📈 Forecast retirement savings growth
- 🏦 Compare savings accounts or investment strategies
- 🎓 Plan for children's college tuition or education funds
- 📉 Understand the long-term effect of different interest rates
- 🚀 Visualize how early investing creates more future wealth
❓ Frequently Asked Questions
How is compound interest different from simple interest?
Compound interest earns interest on both your original principal and the accumulated interest. Simple interest is calculated only on the original amount.
Can I simulate bi-weekly contributions?
Not at the moment. The tool currently supports monthly, quarterly, or yearly contributions. Bi-weekly simulation may be added in future updates.
What compounding frequency should I choose?
Monthly or daily compounding generally results in more growth over time than annual compounding, assuming the same interest rate.
How do I interpret the results?
The final output shows your projected total balance, the portion from your contributions, and the portion earned from interest.
Can I change the currency?
Yes. Use the currency selector at the top of the calculator. All inputs and outputs will be shown with your selected currency (€, $, £, ₹, etc.).
What happens if I enter 0% interest?
The calculator will treat your balance as a flat savings plan with no growth—only contributions will accumulate over time.
Does this calculator account for taxes or inflation?
No. It assumes a consistent interest rate with no tax or inflation. For more advanced planning, use the Retirement Savings Calculator.