Compound Interest Calculator
Compute future value with compound growth and periodic contributions.
Tips
- Compounding frequency increases effective annual yield.
- Contributions are assumed at the end of each period.
About this Compound Interest Calculator
Compute future value with compounding and periodic contributions. Our compound interest calculator helps you understand how investments grow over time with compound interest and regular contributions. Perfect for retirement planning, investment analysis, savings goals, or understanding the power of compound interest. The tool calculates future values accounting for initial principal, interest rate, compounding frequency, and periodic contributions.
Key Features
Calculate future value with compound interest
Support for periodic contributions
Multiple compounding frequencies
Interest rate calculations
Time period calculations
Growth visualization
Total contribution tracking
Works entirely in your browser for privacy
How to Use
Enter initial principal amount
Enter annual interest rate
Enter time period (years)
Select compounding frequency
Add periodic contributions if applicable
View calculated future value
See total contributions and interest earned
Understand growth over time
Popular Use Cases
Plan retirement savings
Calculate investment growth
Set savings goals
Understand compound interest power
Compare investment options
Plan for financial goals
Calculate long-term savings
Understand investment returns
Tips & Best Practices
Higher compounding frequency increases growth
Regular contributions significantly boost final value
Start early to maximize compound interest benefits
Compare different interest rates and terms
Use for long-term financial planning
Understand the impact of time on growth
Factor in inflation for realistic planning
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal plus accumulated interest from previous periods. It allows investments to grow exponentially over time.
How does compounding frequency affect growth?
More frequent compounding (daily vs annually) results in higher returns because interest is calculated and added more often, allowing it to compound more quickly.
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal. Compound interest is calculated on principal plus accumulated interest, resulting in exponential growth.
How do periodic contributions affect the final value?
Regular contributions significantly increase the final value because each contribution also earns compound interest over the remaining time period.