See how your money grows over time with the power of compounding
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This free compound interest calculator shows how your savings or investments can grow over time. Enter your starting amount, interest rate, time period and monthly contribution to see your future value, total money invested and interest earned. You can also see the value adjusted for inflation.
The growth chart and yearly breakdown make it easy to see how compounding speeds up in the later years.
Without extra contributions, the future value of an investment is:
Example: $10,000 at 8% compounded monthly for 20 years grows to about $49,268. With simple interest the same money would only reach $26,000. The calculator also adds your monthly contributions to the balance, so the result can be much higher.
Compound interest means you earn interest on your original money and also on the interest it has already earned. Over many years this snowball effect makes your balance grow faster than simple interest, which only pays on the original amount.
More frequent compounding gives slightly more growth. Daily compounding earns a little more than monthly, and monthly earns a little more than yearly. The difference is usually small compared to the effect of the rate, the time period and your monthly contributions.
The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by the annual interest rate. At 8% your money doubles in about 9 years (72 ÷ 8).
Inflation lowers what money can buy over time. The inflation adjusted value shows your future balance in today's buying power, so you can see what it is really worth, not just the raw number.
Regular contributions add new money that also starts earning interest. Even a small monthly amount can grow into a large sum over 20 or 30 years. Try changing the monthly contribution above to see the difference.
No. The calculator assumes the same interest rate every year. Real investments such as stocks go up and down, so actual results will vary. Use the result as a planning estimate, not a promise.
Disclaimer: This calculator is for educational purposes only and is not investment or financial advice. Actual returns are not guaranteed and will vary.