Compound Interest Calculator

Calculate compound interest and investment growth with monthly contributions. See the power of compounding and plan your financial future with detailed projections and visualizations.

Calculate Investment Growth

Enter your starting investment amount
Additional amount invested each month

Professional Investment Tools

Advanced calculators for comprehensive investment planning

Retirement Planner

Calculate retirement savings needs and 401k contributions

Portfolio Analyzer

Optimize asset allocation and risk management

Roth IRA Calculator

Compare traditional vs Roth IRA investment strategies

Dollar Cost Averaging

Analyze systematic investment strategies over time

Start Investing Today

Compare top investment platforms and find the best broker for your needs. Low fees, powerful tools, and expert guidance.

Understanding Compound Interest

Learn how compound interest works and discover strategies to maximize your investment growth over time.

The Compounding Effect

Compound interest means earning interest on your interest, creating exponential growth over time.

Rule of 72: 72 ÷ interest rate = years to double
Your Doubling Time: Calculate to see

Time Value of Money

Starting early is more powerful than contributing more money due to compound growth.

Early Start Advantage: Time beats timing
Compound Frequency: More = Better

Regular Contributions

Consistent monthly investments can dramatically increase your final wealth.

Monthly vs Lump Sum: Calculate to compare
Dollar Cost Averaging: Reduces risk

Interest Rate Impact

Small differences in interest rates compound to massive differences over time.

1% Rate Difference: Calculate to see impact
Power of Compounding: Exponential growth

Compound Interest Tips & Guidelines

Maximizing Growth

  • Start investing as early as possible
  • Contribute regularly and consistently
  • Reinvest all dividends and interest
  • Choose tax-advantaged accounts (401k, IRA)
  • Avoid withdrawing funds early

Investment Strategies

  • Diversify your investment portfolio
  • Focus on low-cost index funds
  • Take advantage of employer matching
  • Increase contributions with salary raises
  • Stay invested through market volatility

Compound Interest Fundamentals

The Formula

A = P(1 + r/n)^(nt)

  • A: Final amount
  • P: Principal (initial amount)
  • r: Annual interest rate
  • n: Compounding frequency per year
  • t: Time in years

Compounding Frequency

  • Daily: 365 times per year
  • Monthly: 12 times per year
  • Quarterly: 4 times per year
  • Annually: 1 time per year
  • More frequent = slightly higher returns

Key Principles

  • Time is your greatest asset
  • Small amounts grow into large sums
  • Consistency beats perfection
  • Reinvestment accelerates growth
  • Patience produces powerful results