Compound Interest Calculator

See how your investments grow over time with compound interest

Calculate Your Returns

Your Results

Total Balance
$0
Total Contributions
$0 (principal + monthly)
Interest Earned
$0

Year-by-Year Growth

Year 1: $0
Year 5: $0
Year 10: $0
Year 20: $0

How Compound Interest Works

Compound interest is the interest calculated on the initial principal and the accumulated interest from previous periods. This creates a snowball effect where your money grows exponentially over time[1].

The Formula: A = P(1 + r/n)^(nt) + PMT × (((1 + r/n)^(nt) - 1) / (r/n))

Where: A = Final amount, P = Principal, r = Annual rate, n = Compounds per year, t = Time in years, PMT = Monthly contribution.

Historically, the S&P 500 has returned about 10% annually over long periods[2]. Using a conservative 7% return, $500/month invested over 30 years can grow to over $600,000.

Disclaimer: This calculator is for educational purposes only. Results are estimates based on your inputs and do not constitute financial advice. Consult a qualified financial advisor for personalized recommendations.