Compound Interest Calculator
Discover the power of compound interest and see how your investments can grow over time
Initial Investment
Annual Interest Rate
Time Period
Monthly Contribution
Compounding
12 times per year
Average Inflation
Historical US average: ~3%
Rule of 72
Money doubles in ~10.3 years
Growth Visualization
Investment Summary
Final Amount
$300,851
Total Contributions
$130,000
Interest Earned
$170,851
Today's Dollars
$166,574
Real Return
28.13%
Effective Annual Rate
7.23%
The Magic of Compounding
Compound interest means earning interest on your interest. The earlier you start, the more time your money has to grow exponentially through the power of compounding.
Frequency Matters
More frequent compounding (daily vs annually) can increase your returns, though the difference becomes smaller at higher frequencies. Monthly compounding offers a good balance for most investments.
Regular Contributions
Consistent monthly contributions can dramatically increase your final amount. Even small, regular investments can grow into substantial wealth over time through dollar-cost averaging.