Compound Interest Calculator

Discover the power of compound interest. Calculate how your investments grow over time with regular contributions and see detailed projections of your financial future.

Investment Parameters

Initial Investment

$
%

Time & Regular Contributions

years
$

Advanced Options

%

For real purchasing power analysis

%

Salary increases, raises, etc.

Investment Summary

Enter your investment details to see compound growth projections

Understanding Compound Interest

The Power of Compounding

Einstein's 8th Wonder

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."

Time Multiplier

The earlier you start, the more time your money has to grow exponentially through compounding.

Regular Contributions

Consistent contributions amplify the compounding effect, even with small amounts.

Compounding Frequency Impact

Daily Compounding Highest Returns
Monthly Compounding Very Good
Quarterly Compounding Good
Annual Compounding Basic

💡 Maximizing Your Returns

Start Early:

  • • Even small amounts compound significantly over time
  • • Starting 10 years earlier can double your returns
  • • Time is your greatest investment ally

Consistency Pays:

  • • Regular contributions build wealth faster
  • • Dollar-cost averaging reduces risk
  • • Automate investments for best results

⚠️ Important Considerations

Investment Risks:

  • • Past performance doesn't guarantee future results
  • • Market volatility affects actual returns
  • • Diversification is essential

Inflation Impact:

  • • Inflation reduces purchasing power over time
  • • Real returns = Nominal returns - Inflation
  • • Consider inflation-adjusted goals