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Interest Calculator

Calculate compound interest with fixed principal and periodic contributions

This Compound Interest Calculator can help determine the compound interest accumulation and final balances on both fixed principal amounts and additional periodic contributions. There are also optional factors available for consideration, such as the tax on interest income and inflation.

Modify the values and click the Calculate button to use
$
$
$
of each compounding period
%
years
months
%
%
Results
Ending balance
$0.00
Total principal
$0.00
Total contributions
$0.00
Total interest
$0.00
Interest of initial investment
$0.00
Interest of the contributions
$0.00
Buying power of the end balance
after inflation adjustment
$0.00
Accumulation Schedule
Year Deposit Interest Ending balance
Month Deposit Interest Ending balance
About Compound Interest
What is Compound Interest?

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. It's essentially "interest on interest," making your money grow faster than simple interest, which is calculated only on the principal amount.

The Compound Interest Formula

The basic formula for compound interest is:

A = P(1 + r/n)^(nt)

Where:

  • A = Final amount
  • P = Principal (initial investment)
  • r = Annual interest rate (in decimal form)
  • n = Number of times interest is compounded per year
  • t = Time (in years)
How Compound Interest Works

Compound interest accelerates the growth of your money over time. The more frequently interest is compounded (daily, monthly, quarterly, etc.), the more your money will grow.

The Power of Time and Regular Contributions

The two most powerful factors in growing your wealth through compound interest are:

  • Time: The longer your money has to grow, the more dramatic the effects of compounding.
  • Regular Contributions: Adding regular contributions to your initial investment significantly increases your final balance.

Tip: Starting early, even with smaller amounts, can lead to significantly larger returns than starting later with larger amounts, thanks to the power of compound interest over time.