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Compound Interest Calculator
Calculate compound interest and see how your money grows over time with our free calculator
Input Details
$
%
years
$
Optional: Add regular contributions
Final Balance
$19,671.51
After 10 years
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Total Contributions
$10,000
Principal + additions
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Total Interest Earned
$9,671.51
Growth from compound interest
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Growth Over Time
Year-by-Year Breakdown
| Year | Balance | Total Contributions | Total Interest | Yearly Interest |
|---|---|---|---|---|
| 1 | $10,700 | $10,000 | $700 | $700 |
| 2 | $11,449 | $10,000 | $1,449 | $749 |
| 3 | $12,250.43 | $10,000 | $2,250.43 | $801.43 |
| 4 | $13,107.96 | $10,000 | $3,107.96 | $857.53 |
| 5 | $14,025.52 | $10,000 | $4,025.52 | $917.56 |
| 6 | $15,007.3 | $10,000 | $5,007.3 | $981.79 |
| 7 | $16,057.81 | $10,000 | $6,057.81 | $1,050.51 |
| 8 | $17,181.86 | $10,000 | $7,181.86 | $1,124.05 |
| 9 | $18,384.59 | $10,000 | $8,384.59 | $1,202.73 |
| 10 | $19,671.51 | $10,000 | $9,671.51 | $1,286.92 |
How Compound Interest Works
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. This creates a snowball effect where your money grows exponentially over time.
The Formula: A = P(1 + r/n)^(nt)
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times interest compounds per year
- t = Time in years
Pro Tip: The more frequently interest compounds, the more you earn. Starting early and contributing regularly are the keys to maximizing compound interest.