Compound Interest Calculator

Compound Interest Calculator
Future Investment Value
$44867.20
Total Principal Contributed
$29000.00
Total Interest Earned
$15867.20

What Is Compound Interest?

Compound interest is interest earned on top of previously earned interest. Over multi-year time horizons, compounding creates exponential growth, transforming modest monthly contributions into substantial wealth accumulation.

The Power of Exponential Growth

Albert Einstein famously referred to compound interest as the "eighth wonder of the world." By starting early and maintaining consistent monthly deposits, compound growth accelerates rapidly in the outer years of your investment timeline.

Frequently Asked Questions

What is compound interest?

Compound interest is interest calculated on the initial principal plus all of the accumulated interest from previous periods.

What is the compound interest formula?

A = P(1 + r/n)^(nt), where P is principal, r is annual interest rate, n is compounding frequency per year, and t is time in years.

How does compounding frequency affect total return?

More frequent compounding (e.g. monthly vs annually) results in slightly higher total interest accrued over time.

What is the Rule of 72?

The Rule of 72 is a quick estimation shortcut: divide 72 by your annual interest rate to find approximate years needed to double your money.

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Features & Highlights

  • Principal & Recurring Deposits