Compound Interest & Wealth Growth Calculator
Computes future investment wealth with compound interest and recurring contributions across customizable frequencies.
Compound Interest Calculator
Simulates compound investment growth with initial principal and recurring periodic deposits across customizable compounding frequencies.
Ending FV = P(1 + r/n)^(nt) + PMT[((1 + r/12)^(12t) - 1) / (r/12)]
Principal Component: $10,000 → $28,489 | Recurring Deposits: $45,000 → $79,241
Effective Annual Yield (APY) = (1 + r/n)ⁿ - 1 = 7.23%
What is Compound Interest?
Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods.
Often called the "eighth wonder of the world," compounding accelerates wealth growth exponentially over time.
Formula & Step-by-Step Calculation
Compound principal and future value of regular periodic deposits.
Worked Step-by-Step Examples
$10,000 initial investment at 7% annual interest for 10 years with $100/mo contribution
Common Real-World & Academic Use Cases
- ✓ Retirement 401(k) / Roth IRA long-term planning
- ✓ College fund savings projections
- ✓ Comparing compounding frequencies across savings accounts
How to Use the Compound Interest & Wealth Growth Calculator
Enter Principal & Rate
Input your starting amount and expected annual rate of return.
Set Contributions & Time
Input monthly savings and investment duration in years.
View Ending Balance
Inspect total wealth and interest earned.
Frequently Asked Questions
Q: What is the Rule of 72?
A quick mental shortcut: divide 72 by the annual interest rate to find the approximate number of years required for your money to double (e.g. 72 / 7% ≈ 10.3 years).