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Compound Interest Calculator

Discover the power of compound interest and plan your financial future with our advanced calculator

Calculate Your Returns

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Ready to Calculate

Fill in the investment details and click Calculate to see your potential returns

About Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.

Growth Over Time

Watch your money grow exponentially as interest is earned on both your initial investment and accumulated interest.

Time Value

The earlier you start investing, the more time your money has to grow through the power of compound interest.

Frequency Matters

More frequent compounding periods can significantly increase your returns over the long term.

How to Use This Calculator

1

Enter Your Investment Details

Start by entering your initial investment amount, regular contributions, and investment period. You can adjust the contribution frequency to match your savings plan.

2

Set Interest Parameters

Input your expected annual interest rate and choose how often interest is compounded. For more accurate results, consider adding tax and inflation rates.

3

Analyze Results

Review the calculated results, including your final balance and total interest earned. Use the interactive chart to visualize your investment growth over time.

Frequently Asked Questions

What is compound interest?

Compound interest is when you earn interest on both your initial investment and on the interest you've already earned. This can significantly accelerate your wealth growth over time.

How often should interest compound?

More frequent compounding (e.g., daily or monthly) typically results in higher returns than less frequent compounding (e.g., annually). However, the actual frequency may depend on your investment vehicle.

Why consider inflation?

Inflation reduces the purchasing power of money over time. Including an inflation rate helps you understand the real value of your investment in today's dollars.

How do taxes affect returns?

Investment earnings are typically taxable. Adding a tax rate to your calculation provides a more realistic view of your after-tax returns.