Compound Interest Calculator
Interactive compound interest calculator with chart, regular contributions, multiple compounding frequencies, and inflation adjustment. See year-by-year growth.
Compound Interest Scenarios
How to use
- 1Enter your initial investment amount
- 2Enter regular contribution amount and choose Monthly / Yearly
- 3Enter expected annual interest rate (%)
- 4Use the slider to select investment duration (1–50 years)
- 5Choose compounding frequency: Monthly, Quarterly, or Annually
- 6(Advanced) Enter inflation rate to see real purchasing power
Frequently Asked Questions — Compound Interest Calculator
What is compound interest?+
Compound interest is calculated on both the initial principal and the accumulated interest from previous periods. This creates a "snowball effect" — your money grows faster and faster over time.
Why should I start investing early?+
Starting early gives compound interest more time to work. For example, investing $10,000 at age 25 with 8% annual return will be worth roughly double compared to investing the same amount at age 35.
How does inflation affect my savings?+
Inflation reduces the purchasing power of money over time. At 3% annual inflation, $100,000 today is worth only ~$74,000 in real terms after 10 years. Your investment return should exceed inflation.
Which compounding frequency should I use?+
Monthly compounding gives slightly better results than annual because interest is reinvested more frequently. However, the difference is typically small (0.5-1%).