Calculate how your investments grow over time with the power of compound interest. See the impact of regular contributions and different compounding frequencies.
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For simple compound interest without additional contributions:
A = P(1 + r/n)^(nt)Where:
A = Final amount
P = Principal (initial investment)
r = Annual interest rate (decimal)
n = Compounding frequency per year
t = Time in years
Future Value
$0.00
Total Contributions
$0.00
Total Interest Earned
$0.00
| Year | Balance | Contributions to Date | Interest to Date |
|---|
The earlier you start investing, the more time your money has to grow. Thanks to compound interest, even small investments can grow significantly over long time periods.
Adding regular contributions to your investments can dramatically increase your final balance. The compounding effect works on every dollar you invest.
Even a small increase in your rate of return can have a significant impact on your final balance over time. This is why investment selection matters.
Find answers to common questions about Online Calculator.
Compound interest is calculated using the formula: A = P(1 + r/n)^(nt). Try our compound interest calculator for instant results.
The Compound Interest Calculator helps determine the future value of an investment or savings by applying interest that is compounded periodically.
Compound interest is calculated on both the initial principal and the accumulated interest from previous periods using the formula:A = P(1 + r/n)^(nt), where P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest, leading to exponential growth.
Enter the principal amount, annual interest rate, compounding frequency (daily, monthly, quarterly, annually), and investment duration. The calculator will compute the future value.
The compounding frequency refers to how often interest is added to the principal. Common frequencies include daily, monthly, quarterly, and annually.
Yes, you can use it to calculate interest for both investments (such as savings or retirement funds) and loans (such as mortgages or credit card debt).
Inflation reduces the real value of money over time. The calculator does not adjust for inflation, but you can subtract an estimated inflation rate from your expected returns.
Negative interest rates indicate a loss instead of a gain. The calculator will compute the decrease in value over time.
Some versions of the calculator allow you to add regular deposits to see how your investment grows over time.
Yes, compound interest plays a crucial role in retirement savings. You can use this calculator to estimate the growth of your retirement funds over time.
The more frequently interest compounds, the more your investment will grow. Daily compounding will result in higher returns than annual compounding, assuming the same annual interest rate.
Many investment vehicles benefit from compound interest, including savings accounts, certificates of deposit (CDs), bonds, dividend-paying stocks (when dividends are reinvested), and mutual funds.
The Rule of 72 is a quick way to estimate how long it will take for your investment to double. Divide 72 by your annual interest rate to get the approximate number of years for your money to double.
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