Compound Interest Calculator
See how your money grows over time with the power of compound interest
Compound Interest Calculator
Future Value
$37,405
Total Contributed
$22,000
Interest Earned
$15,405
Year-by-Year Breakdown
| Year | Balance | Contributed | Interest |
|---|---|---|---|
| 1 | $11,962 | $11,200 | $762 |
| 2 | $14,066 | $12,400 | $1,666 |
| 3 | $16,322 | $13,600 | $2,722 |
| 4 | $18,741 | $14,800 | $3,941 |
| 5 | $21,336 | $16,000 | $5,336 |
| 6 | $24,117 | $17,200 | $6,917 |
| 7 | $27,100 | $18,400 | $8,700 |
| 8 | $30,298 | $19,600 | $10,698 |
| 9 | $33,728 | $20,800 | $12,928 |
| 10 | $37,405 | $22,000 | $15,405 |
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest (calculated only on the principal), compound interest grows exponentially over time - often called 'interest on interest'.
How often should interest compound?
The more frequently interest compounds, the faster your money grows. Daily compounding yields slightly more than monthly, which yields more than annually. For most savings accounts and investments, monthly or daily compounding is common.
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 your annual interest rate. For example, at 8% annual return, your money doubles in roughly 72 ÷ 8 = 9 years.
What's a realistic return rate?
Historically, the S&P 500 has returned about 10% annually before inflation (7% adjusted for inflation). High-yield savings accounts currently offer 4-5%. CDs range from 3-5%. Your actual rate depends on your investment type and market conditions.
Does adding monthly contributions make a big difference?
Enormously. Regular contributions leverage compound interest on top of compound interest. Even small monthly additions can dramatically increase your final balance over long periods - this is the foundation of dollar-cost averaging.