Compound Interest Calculator

Compound Interest Projection:

Total Principal Invested: $0.00

Total Interest Earned: $0.00

Future Value of Investment: $0.00

How to Use the Compound Interest Calculator

1. Enter Initial Investment: Input your starting principal amount
2. Set Regular Contribution: Enter the amount you plan to add regularly
3. Choose Contribution Frequency: Select how often you'll make contributions
4. Enter Interest Rate: Input the expected annual interest rate
5. Select Compounding Frequency: Choose how often interest compounds
6. Set Investment Period: Enter the time duration in years or months
7. Calculate: Click "Calculate Compound Interest" to see your projection

Compound Interest Tips & Strategies

• Start Early: Time is your greatest ally - even small amounts compound significantly over decades
• Regular Contributions: Consistent investing amplifies the compounding effect
• Higher Frequency: More frequent compounding (daily vs annually) increases returns
• Reinvest Earnings: Always reinvest dividends and interest to maximize compounding
• Long-term Perspective: Compound interest works best over extended periods
• Tax-Advantaged Accounts: Use 401(k), IRA, and other tax-deferred accounts
• Avoid Early Withdrawals: Breaking the compounding cycle reduces long-term growth

Understanding Compound Interest

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

The Rule of 72: Divide 72 by your interest rate to estimate how long it takes to double your money.

Compounding Frequency Impact: Daily compounding typically yields only slightly more than monthly compounding.

Real vs Nominal Returns: Consider inflation when evaluating long-term investment projections.