Compound Interest Calculator
See the power of compound interest. Enter your initial investment, monthly contributions, expected annual return, and time period to calculate your projected future value.
How Compound Interest Works
Compound interest earns returns on both your original investment and previously earned returns. This creates exponential growth that accelerates over time, making it one of the most powerful forces in building wealth.
The Compound Interest Formula
FV = P(1+r)^n + PMT x ((1+r)^n - 1) / r. P is your initial investment, r is the monthly return rate, n is the total months, and PMT is the monthly contribution amount.
Time is the Key Factor
The longer your investment horizon, the more dramatic the compounding effect. Starting 10 years earlier can often result in more wealth than doubling your monthly contributions. This is why financial advisors emphasize starting early.