Compound Interest Calculator
Estimate investment growth with optional periodic contributions.
Solid line shows projected balance. Dashed line shows total contributions over time.
How Compound Interest Works
Compound interest grows your savings by applying interest on both the original principal and the accumulated interest from previous periods.
Formula
A = P(1 + r/n)^{nt} where P is the starting amount, r is the annual interest rate, n is the number of compounding periods per year andt is the number of years.
Benefits of regular contributions
Adding a fixed contribution each period accelerates growth and can significantly increase the future value of your investment.
The calculator plots both the projected balance and cumulative contributions, making it easy to see when compound interest begins to outpace the money you put in.
Source: Wikipedia