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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

YearBalanceTotal ContributionsTotal InterestYearly 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.