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Compound Interest Calculator
Calculate how your money grows over time with compound interest and regular contributions. Perfect for retirement planning and investment growth projections.
1 Investment Details
$
$
%
years
How often interest is compounded per year
2 Investment Results
$106,639
$70,000
$36,639
52.3%
Investment Breakdown
Initial Investment $10,000
Monthly Contributions $60,000
Interest Earned $36,639
Understanding Compound Interest
Compound interest is the interest earned on both the original principal and the accumulated interest from previous periods. This creates a snowball effect where your money grows exponentially over time.
The Formula:
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Where A = final amount, P = principal, r = annual interest rate, n = compound frequency, t = time, PMT = regular payment
Maximizing Your Returns
- Start Early: Time is your greatest asset in compound interest
- Contribute Regularly: Consistent monthly contributions accelerate growth
- Reinvest Dividends: Let all earnings compound back into your investment
- Higher Frequency: More frequent compounding (daily vs. annually) increases returns
- Stay Consistent: Avoid withdrawing funds to maximize compound growth
Real-World Applications
Use this calculator for:
- Retirement Planning: Calculate 401(k) or IRA growth over decades
- Education Savings: Plan for college costs with 529 plans
- Emergency Fund: See how high-yield savings accounts grow
- Investment Goals: Plan for major purchases or financial milestones
- Debt Payoff: Understand the cost of carrying high-interest debt