Compound Interest Calculator
Calculate compound interest with monthly contributions and visualize your investment growth over time.
Growth Chart
Year-by-Year Growth
| Year | Contributions | Interest | Balance |
|---|---|---|---|
| 1 | $6,000.00 | $919.19 | $16,919.19 |
| 2 | $6,000.00 | $1,419.38 | $24,338.58 |
| 3 | $6,000.00 | $1,955.73 | $32,294.31 |
| 4 | $6,000.00 | $2,530.85 | $40,825.16 |
| 5 | $6,000.00 | $3,147.55 | $49,972.70 |
| 6 | $6,000.00 | $3,808.82 | $59,781.53 |
| 7 | $6,000.00 | $4,517.90 | $70,299.43 |
| 8 | $6,000.00 | $5,278.24 | $81,577.68 |
| 9 | $6,000.00 | $6,093.55 | $93,671.22 |
| 10 | $6,000.00 | $6,967.79 | $106,639.02 |
| 11 | $6,000.00 | $7,905.24 | $120,544.25 |
| 12 | $6,000.00 | $8,910.45 | $135,454.70 |
| 13 | $6,000.00 | $9,988.32 | $151,443.02 |
| 14 | $6,000.00 | $11,144.12 | $168,587.14 |
| 15 | $6,000.00 | $12,383.47 | $186,970.62 |
| 16 | $6,000.00 | $13,712.41 | $206,683.03 |
| 17 | $6,000.00 | $15,137.43 | $227,820.45 |
| 18 | $6,000.00 | $16,665.45 | $250,485.91 |
| 19 | $6,000.00 | $18,303.94 | $274,789.85 |
| 20 | $6,000.00 | $20,060.87 | $300,850.72 |
The Power of Compound Interest
Compound interest is one of the most powerful concepts in finance. When you earn interest on both your initial investment and previously earned interest, your money grows exponentially over time. Regular monthly contributions amplify this effect, making consistent saving one of the most reliable paths to building wealth.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It's often called 'interest on interest' and helps investments grow exponentially over time.
How often is interest compounded?
This calculator compounds interest monthly, which is common for savings accounts and many investment accounts. The more frequent the compounding, the more interest you'll earn.
Should I include monthly contributions?
Yes! Regular monthly contributions significantly accelerate wealth building. Even small monthly additions can lead to substantial growth over decades due to compound interest.
Is this calculation guaranteed?
No. This calculator assumes a fixed annual return rate. Real investment returns fluctuate. Use this as a planning tool, not a guarantee.