Financial Calculators
Compound Interest Calculator
See how your investments grow over time with compound interest. Calculate with monthly contributions and different compounding frequencies.
Investment Details
$10,000.00
$200.00
7.00%
10 years
Final Amount
$54,713.58
Effective annual rate: 7.23%
Investment Breakdown
Total Contributions$34,000.00
Total Interest Earned$20,713.58
Final Amount$54,713.58
Growth Over Time
How is Compound Interest Calculated?
The compound interest formula calculates how your money grows:
Variable Definitions
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Compounding frequency per year
- t = Time in years
Example Calculation
For $10,000 at 7% for 10 years (monthly):
- P = $10,000
- r = 7%
- n = 12 (monthly)
- t = 10 years
- A = $20,096.61
The Power of Compounding
Compound interest is often called the 'eighth wonder of the world.' The earlier you start investing, the more time your money has to grow exponentially.
Tips for Maximizing Compound Growth
- 1Start investing as early as possible
- 2Make regular contributions, even small ones
- 3Reinvest all dividends and interest
- 4Choose investments with higher compounding frequency
- 5Be patient and let time work for you