Calculate the compound interest of your investment.
Compound interest is often called the "eighth wonder of the world". Unlike simple interest, where you only earn money on your principal, compound interest means you earn interest on your interest. It causes your wealth to grow exponentially rather than linearly.
Our Compound Interest Calculator helps you visualize this powerful effect, whether you are planning for retirement, saving for a house, or just curious about investment growth.
Calculate your future wealth in three easy steps:
The result will show the total future value of your investment.
The formula for annual compound interest is:
$$ A = P \cdot (1 + \frac{r}{100})^t $$
Where:
Imagine you invest $10,000 at an annual rate of 5% for 20 years.
That is an extra $6,500 just for leaving the money invested!
It's a shortcut to estimate how long it takes to double your money. Divide 72 by your interest rate. At 6%, it takes 12 years (72 / 6 = 12).
No, this basic calculator assumes a one-time lump sum investment. For monthly contributions, please use our savings plan calculator.
Generally, yes. Higher returns (like 10%+) come with higher volatility (risk of losing value), like in the stock market. Safe investments (bonds, savings accounts) usually offer lower rates.
Start early! Compounding works best over long periods. Investing $100 a month starting at age 20 yields significantly more than investing $200 a month starting at age 40.