Compound Interest Calculator

See how your investment grows with monthly contributions and compounding.

Interactive calculator
$
$
%
Result
Future value
$300,851
Total contributed
$130,000
Interest earned
$170,851
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What it is

Compound interest is the magic of earning returns on your returns. Small monthly contributions over decades become large balances.

The formula

FV = P(1+r)^n + PMT × ((1+r)^n − 1) / r Where r is the periodic rate and n is number of periods.

Why it matters

Starting 10 years earlier often beats contributing twice as much. Time is the most powerful variable.

Worked examples

Start at 25

$500/mo at 7% for 40 years → ~$1.3M.

Start at 35

Same contribution, 30 years → ~$610k — less than half.

Common pitfalls
  • Assuming a constant return — markets vary year to year.
  • Ignoring inflation eroding the real value.
  • Forgetting taxes on non-retirement accounts.

Frequently asked questions

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