Compound Interest Calculator
Calculate the power of compound interest with different frequencies and regular contributions.
Investment Parameters
Future Value
$1,628.89
Total Interest
$628.89
Total Contributions
$1,000.00
Effective Rate
5.00%
Year-by-Year Breakdown
| Year | Total Value | Contributions | Interest Earned |
|---|---|---|---|
| 0 | $1,000.00 | $1,000.00 | $0.00 |
| 1 | $1,050.00 | $1,000.00 | $50.00 |
| 2 | $1,102.50 | $1,000.00 | $102.50 |
| 3 | $1,157.63 | $1,000.00 | $157.63 |
| 4 | $1,215.51 | $1,000.00 | $215.51 |
| 5 | $1,276.28 | $1,000.00 | $276.28 |
| 6 | $1,340.10 | $1,000.00 | $340.10 |
| 7 | $1,407.10 | $1,000.00 | $407.10 |
| 8 | $1,477.46 | $1,000.00 | $477.46 |
| 9 | $1,551.33 | $1,000.00 | $551.33 |
| 10 | $1,628.89 | $1,000.00 | $628.89 |
Understanding Compound Interest
How It Works
- • Compound interest is interest earned on both the principal and previously earned interest
- • More frequent compounding leads to higher returns
- • Regular contributions can significantly boost your returns
- • Time is your greatest ally - start investing early
Compounding Frequencies
- • Daily: 365 times per year
- • Monthly: 12 times per year
- • Quarterly: 4 times per year
- • Semi-annually: 2 times per year
- • Annually: Once per year
Formula Used
A = P(1 + r/n)^(nt) + PMT × [(1 + r/n)^(nt) - 1] / (r/n)
Where: A = final amount, P = principal, r = annual rate, n = compounding frequency, t = time, PMT = annual contribution