Compound Interest Calculator

    See how your money grows over time with compound interest. Calculate savings and investment returns.

    Investment Details

    Enter your savings plan information

    💡 Typical Interest Rates

    High-Yield Savings: 4-5% annual

    Index Funds (S&P 500): ~10% historical average

    Bonds: 3-6% annual

    Conservative Portfolio: 5-7% annual

    Year-by-Year Breakdown

    Watch your money grow over time

    YearTotal BalanceYou ContributedInterest Earned
    1$3,507$3,400$107
    2$6,142$5,800$342
    3$8,912$8,200$712
    4$11,824$10,600$1,224
    5$14,885$13,000$1,885
    6$18,102$15,400$2,702
    7$21,484$17,800$3,684
    8$25,039$20,200$4,839
    9$28,775$22,600$6,175
    10$32,703$25,000$7,703

    Future Value

    $0
    after 10 years

    Money Breakdown

    Your Contributions:$0
    Interest Earned:$0
    Final Balance:$0

    NaN% of your final balance is from compound interest!

    The Power of Time

    Starting 10 years earlier could double or triple your final balance, even with the same monthly contribution.

    The earlier you start, the more compound interest works in your favor!

    Maximizing Returns

    •Start as early as possible
    •Contribute consistently every month
    •Reinvest dividends and interest
    •Avoid withdrawing early

    Compound Interest FAQs

    What is compound interest?

    Compound interest is "interest on interest." Your money earns interest, then that interest earns interest, creating exponential growth. It's the most powerful wealth-building tool when you start early and stay consistent.

    What's a realistic interest rate for savings?

    High-yield savings accounts: 4-5%. Stock market (S&P 500 historical average): ~10%. Conservative portfolio (60/40 stocks/bonds): 6-7%. Use conservative estimates for planning. Past performance doesn't guarantee future returns.

    Is it better to save a lot now or monthly?

    Both matter! A large initial deposit gets the compounding started, but consistent monthly contributions often contribute more to your final balance. The key is consistency - automate monthly contributions and never stop.

    Start Growing Your Wealth Today

    Begin with a savings challenge and watch compound interest work its magic