Compound Interest Calculator
See how your money grows over time with the power of compound interest. Compare different investment strategies side-by-side.
Future Value
$0
Total Contributions
$0
Total Interest Earned
$0
Year-by-Year Growth
| Year | Contributions | Interest | Balance |
|---|
AI Insight
⚖️ Compare 3 Investment Scenarios
See how different contributions, returns, and timeframes affect your wealth
💰 Starting Point
A
Conservative
$0
Total Contributed
$0
Interest Earned
$0
Interest %
0%
B
Moderate
$0
Total Contributed
$0
Interest Earned
$0
Interest %
0%
C
Aggressive
$0
Total Contributed
$0
Interest Earned
$0
Interest %
0%
🏆 Comparison Results
Advertisement
📚 Complete Guide to Compound Interest
📈 What is Compound Interest?
Compound interest is "interest on interest" - you earn returns not just on your original investment, but also on the accumulated interest from previous periods.
The formula: A = P(1 + r/n)^(nt)
- A: Final amount
- P: Principal (initial investment)
- r: Annual interest rate
- n: Compounding frequency per year
- t: Time in years
📊 The Power of Time
Example: $10,000 invested at 7% for different periods:
10 years
$19,672
20 years
$38,697
30 years
$76,123
40 years
$149,745
💡 The same $10,000 grows 7.5x more in 40 years than in 10 years!
💰 Pro Tips to Maximize Growth
- Start early: Time is your greatest asset - even small amounts grow huge over decades
- Be consistent: Regular monthly contributions beat lump sums for most people
- Increase contributions: Raise your contribution with every pay raise
- Reinvest dividends: Don't withdraw your earnings - let them compound
- Keep fees low: A 1% fee difference costs tens of thousands over time
- Stay invested: Don't panic sell during market dips
⚠️ Common Mistakes to Avoid
- Waiting to start: Delaying 10 years can cut your final balance in half
- Not accounting for inflation: Real returns are typically 3-4% lower than nominal
- Ignoring taxes: Use tax-advantaged accounts (401k, IRA, Roth)
- Being too conservative: Savings accounts barely beat inflation
- Withdrawing early: Breaking the compound cycle hurts long-term growth