Compound Interest Calculator

Compound Interest Calculator

Compound Interest Calculator

Final Balance: $0
Total Contributions: $0
Total Interest: $0

How to Use the Compound Interest Calculator

Welcome to the Compound Interest Calculator! This tool helps you see how your money can grow over time with regular contributions and compound interest. Follow these simple steps to get started:

  1. Enter Your Initial Investment
    • In the "Initial Investment ($)" field, type the amount of money you’re starting with (e.g., $1000). This is the lump sum you’ll invest upfront.
  2. Set Your Monthly Contribution
    • In the "Monthly Contribution ($)" field, enter how much you plan to add each month (e.g., $100). This is the regular amount you’ll save or invest.
  3. Input the Annual Interest Rate
    • In the "Annual Interest Rate (%)" field, type the yearly interest rate you expect to earn (e.g., 7 for 7%). This reflects how fast your money grows.
  4. Choose the Number of Years
    • In the "Years" field, enter how long you’ll let your investment grow (e.g., 10). This is the time period for your calculation.
  5. Select Compounding Frequency
    • From the "Compounding Frequency" dropdown, pick how often interest is added to your balance: Daily (365 times/year), Monthly (12 times/year, default), Quarterly (4 times/year), Semi-Annually (2 times/year), or Annually (1 time/year). More frequent compounding means more growth!
  6. Calculate Your Results
    • Click the "Calculate" button. The calculator will instantly show:
      • Final Balance: The total amount you’ll have at the end.
      • Total Contributions: The sum of your initial investment and all monthly contributions.
      • Total Interest: The extra money earned from interest alone.
  7. Explore the Chart
    • Below the results, a graph titled "Compound Interest Growth Over Time" appears. It shows two lines:
      • Balance with Interest (blue): How your total money grows each year.
      • Contributions Only (green): What you’d have without interest.
    • Hover over points on the chart to see exact dollar amounts for any year.
  8. Experiment and Adjust
    • Change any input (like adding more monthly savings or increasing the years) and click "Calculate" again. The results and chart update automatically, letting you test different scenarios.

That’s it! Whether you’re saving for a goal or planning an investment, this calculator shows how small contributions and time can add up—thanks to the power of compound interest. Start exploring today!