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Compound Interest Calculator

See how money grows over time. Enter a starting balance, a monthly contribution, an interest rate, and the number of years — and watch compounding do the work.

Quick answer: Compound interest is interest earned on both your original balance and the interest it has already earned. The formula is A = P(1 + r/n)^(nt) — future value equals your principal times one plus the periodic rate, raised to the number of periods. This calculator adds your regular monthly contributions and shows future value, total contributions, and interest earned instantly.
What you're starting with today.
What you add each month.
Expected yearly rate. Historic stock-market averages are often quoted near 7% after inflation.
How long the money stays invested.
Future value
Total you put in
Interest earned
Started with

Estimate only — assumes a steady rate compounded monthly and on-time contributions. Real returns vary and aren't guaranteed; this is general information, not investment advice.

No sign-up No ads Runs in your browser — your numbers never leave your device

Why compounding matters so much

Compound interest means you earn returns on your returns, not just your original money. The longer the runway, the more the later years do the heavy lifting — which is why starting early beats saving more later.

Future value = Start × (1 + r)ⁿ + Contribution × ((1 + r)ⁿ − 1) ÷ r

…where r is the monthly rate and n the number of months. This calculator does it for you.

How compound interest actually works

Compound interest is the reason a modest amount saved consistently can grow into a large sum: you earn returns not only on the money you put in, but on the returns that money has already generated. Each period, your interest is added to the balance, and the next period's interest is calculated on that bigger balance. Over years, this snowball effect does far more work than the contributions themselves.

The formula

For a single lump sum, future value is A = P(1 + r/n)nt, where P is the starting principal, r is the annual rate (as a decimal), n is how many times a year interest compounds, and t is the number of years. When you also add money every month, each contribution compounds for the time remaining — the calculator sums the growth of your starting balance and of every monthly deposit for you.

A worked example

Start with $1,000, add $100 a month, and assume a 7% annual return for 10 years. Your starting $1,000 grows to about $1,970. Your $100-a-month deposits — $12,000 contributed in total — grow to roughly $17,300. Altogether that is about $19,300, of which you contributed $13,000 and roughly $6,300 is growth. Leave it another 10 years and the growth portion grows much faster than the contributions, because compounding accelerates over time.

A fast mental shortcut: the Rule of 72

Divide 72 by your annual return to estimate how many years it takes money to double. At 7%, that is about 10 years; at 9%, about 8 years. It is an approximation, but a useful one for sanity-checking a plan without a calculator.

Common mistakes

When to use it

Use this to set a monthly savings target for a goal, to compare "start now" against "start in five years" (the earlier start almost always wins), or to see how sensitive your plan is to the return rate. Change one input at a time to build intuition for which lever matters most — usually it is time.

Quick FAQ

How is compound interest calculated?

Your balance grows by the periodic rate each period, and each period's growth is added to the base for the next one. With regular contributions, each deposit also compounds from the moment it's added. This calculator combines both.

What rate should I use?

Use a realistic expected return for where the money sits — a savings account rate for cash, or a long-run market average (often quoted near 7% real) for diversified investing. Lower is safer to plan around.

Related: monthly investing growth benchmark (what $X/month becomes) · savings goal calculator · debt payoff calculator · home & money tools.

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More questions

Is the Compound Interest Calculator free to use?

Yes. The Compound Interest Calculator is completely free, runs in your browser, and never asks for a signup, email, or download. Enter your numbers and the result updates instantly.

How accurate is this calculator?

It uses standard formulas and recalculates the moment you change a value, so the math is exact for the inputs you enter. Treat the result as a reliable planning estimate; for decisions with legal or tax consequences, confirm the figures with a qualified professional.

Does it work on my phone?

Yes. The calculator is mobile-friendly and works on any phone, tablet, or computer — there is no app to install and nothing to save.

Can I add this calculator to my own website?

Yes. Scroll to “Add this free calculator to your site” above and copy the embed snippet to place the live calculator on your blog or website for free.

Last reviewed: September 2026. Free to use, no signup — Compound Interest Calculator by ToolWise Digital.

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