Compound Interest Calculator
See how your money grows with compound interest, with optional monthly contributions.
Maturity value
$21,589
Interest represents 53.7% of the maturity value.
Total contributions
$10,000
Interest earned
$11,589
Growth over time
Contributions vs. interest
Yearly breakdown
| Year | Balance | Contributions | Interest |
|---|---|---|---|
| 1 | $10,800 | $10,000 | $800 |
| 2 | $11,664 | $10,000 | $1,664 |
| 3 | $12,597 | $10,000 | $2,597 |
| 4 | $13,605 | $10,000 | $3,605 |
| 5 | $14,693 | $10,000 | $4,693 |
| 6 | $15,869 | $10,000 | $5,869 |
| 7 | $17,138 | $10,000 | $7,138 |
| 8 | $18,509 | $10,000 | $8,509 |
| 9 | $19,990 | $10,000 | $9,990 |
| 10 | $21,589 | $10,000 | $11,589 |
Formula
A = P(1 + r/n)^(nt)
Where P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years. Monthly contributions are added to the balance before each compounding period.
Result interpretation
The maturity value is your total balance at the end of the term. The interest earned is the portion of that balance that came from growth, separate from what you contributed directly.
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Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, so your money grows faster over time than with simple interest.
How does compounding frequency affect returns?
More frequent compounding (monthly or daily versus annually) results in slightly higher returns at the same nominal interest rate, because interest is calculated and added to the balance more often.
Are the projected returns guaranteed?
No. This calculator assumes a constant annual rate for illustration purposes. Actual investment returns vary and are not guaranteed.