Compound Interest Calculator

See how your investments grow over time with the power of compound interest.

Investment Details

Your Results

Future Value

$298,073

Total Contributions

$82,000

Total Interest Earned

$216,073

Growth Over Time

FAQs

What is compound interest?

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It's "interest on interest" that makes your money grow exponentially.

How often should interest compound?

The more frequently interest compounds, the better. Monthly or daily compounding yields slightly more than annual compounding, though the difference is usually marginal.

What's a realistic interest rate?

Savings accounts: 4-5%, Bonds: 4-6%, Stock market (long-term average): 8-10%, High-risk investments: 10%+. Choose based on your risk tolerance and investment type.