Compound Interest Calculator
See how your investments grow over time with the power of compound interest. Add monthly contributions to accelerate your wealth building.
Investment Details
Growth Projection
Future Value
$54,713.58
Total Deposits
$34,000.00
Interest Earned
$20,713.58
Year-by-Year Growth
| Year | Deposits | Interest | Balance |
|---|---|---|---|
| Year 1 | $12,400.00 | $801.42 | $13,201.42 |
| Year 2 | $14,800.00 | $1,834.27 | $16,634.27 |
| Year 3 | $17,200.00 | $3,115.28 | $20,315.28 |
| Year 4 | $19,600.00 | $4,662.39 | $24,262.39 |
| Year 5 | $22,000.00 | $6,494.83 | $28,494.83 |
| Year 6 | $24,400.00 | $8,633.24 | $33,033.24 |
| Year 7 | $26,800.00 | $11,099.74 | $37,899.74 |
| Year 8 | $29,200.00 | $13,918.03 | $43,118.03 |
| Year 9 | $31,600.00 | $17,113.55 | $48,713.55 |
| Year 10 | $34,000.00 | $20,713.58 | $54,713.58 |
How It Works
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This "interest on interest" effect causes wealth to grow exponentially over time, which is why Albert Einstein reportedly called it the "eighth wonder of the world."
The formula is: A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
When you add regular monthly contributions, the growth accelerates significantly. Even small monthly additions can make a dramatic difference over long time periods. This is why financial advisors recommend starting to invest early — time is the most powerful factor in compound growth.