What is compound interest?

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It is often described as "interest on interest" and causes wealth to grow exponentially over time.

How often does compounding happen?

Compounding frequency varies: annually, semi-annually, quarterly, monthly, or daily. More frequent compounding results in slightly higher returns. Our calculator lets you choose the frequency.

What is the Rule of 72?

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% interest, your money doubles in approximately 9 years (72/8=9).

Compound Interest Calculator

Calculate how your savings and investments grow over time with compound interest. See yearly breakdown, growth chart, and total returns.

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💰Investment Details

Initial Investment ($)

Monthly Contribution ($)

Annual Interest Rate (%)

Time Period (years)

Compounding Frequency

📉 Inflation Adjustment

🎯 Goal Calculator

💾 Saved Profiles (0/10)

💎 Future Value

$54,713.58

💳

$34,000.00

Contributions

📈

$20,713.58

Interest Earned

🎯

60.9%

Return

62%

38%

💳 Contributions📈 Compound Interest

⏱️ At 7.0%, your money doubles every ~10.3 years (Rule of 72)

📊 Growth Over Time

ℹ️ About Compound Interest

Compound interest is interest calculated on the initial principal and on the accumulated interest from previous periods. Einstein reportedly called it the “eighth wonder of the world.”

Formula: FV = P(1 + r/n)^(nt) + PMT × [((1+r/n)^(nt) - 1) / (r/n)]

Rule of 72: Divide 72 by the annual interest rate to get the approximate number of years needed to double your money.

Monthly compounding yields slightly more than annual compounding. Daily compounding adds a tiny bit more. The difference is small for most practical purposes.

Frequently Asked Questions

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