Compound Interest Calculator
Visualize how your money grows over time with the power of compounding.
Pro Tip
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
Total Balance
$302,370
Total Contributions
$130,000
Interest Earned
$172,370
Growth Over Time
How Compound Interest Works
Compound interest is often called the "eighth wonder of the world" because it allows your money to grow exponentially. Unlike simple interest, which is only earned on your initial principal, compound interest is earned on both your principal and the interest that has already accumulated.
The frequency of compounding matters. The more often interest is compounded (daily, monthly, quarterly), the faster your balance grows. Our calculator assumes monthly compounding and monthly contributions to give you a realistic view of how a typical savings or investment account behaves.