Compound Interest Calculator
See how your money grows over time with the power of compound interest.
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Results
Future Value
$271,264
Total Contributions
$130,000
Total Interest
$141,264
Contributions
Interest
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Year-by-Year Breakdown
| Year | Contributions | Interest Earned | Total Balance |
|---|
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What Is Compound Interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, which only earns interest on the original amount, compound interest allows your money to grow exponentially over time.
The Compound Interest Formula
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Where: A = future value, P = principal, r = annual rate, n = compounds per year, t = years, PMT = monthly contribution.