Compound Interest Calculator

See how your savings or investments grow with compound interest and regular contributions over time.

YOUR DETAILS
Final Balance
Total Contributions
Total Interest Earned
Interest as % of Final
Doubling Time (Rule of 72)
Ad Unit — Leaderboard (728×90)

The Power of Compound Interest

Albert Einstein reportedly called compound interest "the eighth wonder of the world." Whether or not he said it, the concept is genuinely powerful: interest earns interest, and over time this creates exponential rather than linear growth.

The Formula

FV = PV × (1 + r/n)^(n×t) + PMT × ((1 + r/n)^(n×t) − 1) / (r/n)

Where: FV = future value, PV = present value (principal), r = annual rate, n = compounding periods per year, t = time in years, PMT = regular contribution.

Starting Early Makes the Biggest Difference

Investing $10,000 at 7% for 30 years grows to ~$76,000. But if you also contribute $500/month, the same 30-year balance becomes ~$680,000 — where roughly 60% is pure interest growth. Starting 10 years later with the same contributions produces only ~$320,000. Time in market matters more than amount.

Ad Unit — In-content (300×250)

Frequently Asked Questions

What's the difference between compound and simple interest?
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest. Over long periods, the difference is enormous: $10,000 at 7% for 30 years grows to $30,000 with simple interest but $76,000 with annual compounding.
Is compound interest good for debt?
Compound interest works against you when it applies to debt. Credit cards that compound daily at 20%+ can cause debt to grow very quickly if you only make minimum payments. The same principle that builds wealth in savings accounts erodes wealth in high-interest debt.
What return rate should I use?
Common benchmarks: savings accounts 4–5%, term deposits 4–5%, diversified share portfolio 7–9% (long-term historical average), super fund balanced option ~7%. Use a conservative rate for planning purposes — markets don't grow in a straight line.
Disclaimer: This calculator provides estimates for illustrative purposes. Investment returns are not guaranteed. Past performance is not indicative of future results. This is not financial advice.
Ad Unit — Bottom (728×90)