Compound Interest Calculator

Calculate investment growth with compound returns

Plan your retirement, investments, and savings with regular contributions

Investment Details

Quick Presets

Investment Strategies

Conservative: Bonds, CDs, savings accounts
Balanced: Mix of stocks and bonds
Aggressive: Growth stocks, tech funds
Retirement: Long-term index funds

Investment Projection

$300,851
Final Balance
$170,851
Total Interest Earned
$130,000
Total Contributions
Interest multiplier
Your money will grow by 131.4%

Understanding Compound Interest

The Formula

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

Regular Contributions

Adding money regularly accelerates growth through dollar-cost averaging and more compounding periods.

Time Factor

Starting early is powerful - compound interest rewards patience and consistency over time.

Compounding Frequency

More frequent compounding (daily vs annually) increases returns, but the difference diminishes at higher frequencies.

Mastering Compound Interest

The Magic Formula

A = P(1 + r/n)^(nt) - Albert Einstein called compound interest the "8th wonder of the world" because it grows exponentially over time.

Regular Contributions

Adding money monthly or quarterly accelerates growth through dollar-cost averaging and creates more opportunities for compounding.

Time Factor

Starting early is the most powerful factor. Each year of delay costs exponentially more due to lost compounding periods.

Investment Strategies

Conservative (4-6% bonds), Balanced (7-8% mixed portfolios), Aggressive (10-12% growth stocks) each serve different risk tolerances.

Retirement Planning

Use the 4% withdrawal rule: your retirement savings should be 25x your annual expenses for sustainable withdrawals.

Tax-Advantaged Accounts

401(k), IRA, and Roth IRA accounts provide tax benefits that amplify compound growth through reduced tax drag.

Investment Calculator Features

📈 Growth Projections

Year-by-year balance growth with detailed breakdowns

💰 Regular Contributions

Monthly investing with beginning/end of month timing

🔄 Compounding Frequencies

Daily, monthly, quarterly, or annual compounding options

🎯 Investment Presets

Conservative, balanced, aggressive, and retirement strategies

📊 Visual Breakdown

Interest vs contributions visualization and insights

📅 Monthly Schedule

Detailed month-by-month growth tracking

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