Compound Interest Calculator

The Compound Interest Calculator shows how your investments grow over time when both your principal and your accumulated interest earn returns. Albert Einstein reportedly called compound interest the eighth wonder of the world — this tool makes it visual.

Use it free in your browser — no account or download required.

Key Features

How to Use Compound Interest Calculator

  1. Step 1: Enter your starting principal
    This is the amount you're investing today. It can be as small as $100 — the most important variable is time, not the starting amount.
  2. Step 2: Set a monthly contribution
    Enter how much you'll add each month. Regular contributions (even small ones) dramatically accelerate growth. $200/month invested consistently for 30 years produces more than a $50,000 lump sum invested once.
  3. Step 3: Enter the annual interest rate
    Use 6–8% for a diversified stock market index fund, 4–5% for bonds or high-yield savings, or the exact rate for your specific account.

See all 6 steps in the full guide →

Tips & Best Practices

Frequently Asked Questions

What compounding frequency should I use?

Monthly is most accurate for savings accounts and regular investment accounts. Annual compounding is simpler but slightly understates returns. The difference between monthly and daily compounding over 30 years is typically less than 1%.

Does this account for taxes?

No. For after-tax projections, reduce your return rate by your marginal tax rate on investment gains, or use 70% of the gross rate as a rough approximation.

Available Plans

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