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Compound Interest Calculator

Compound Interest Calculator

See how principal, monthly contributions and compounding grow over time — with a yearly chart

Money in

Contribution timing

Growth assumptions

Examples

20-year index plan

Input
10,000 initial · 200/month · 7% nominal · monthly · end-of-period
Output
≈ 142,000 final · ≈ 58,000 contributed · ≈ 84,000 interest · EAR 7.23%

More than half the final balance arrives as interest — the case for starting early.

Timing effect

Input
Same plan, contributions moved to beginning of period
Output
Final balance rises by a low single-digit percentage

Every contribution earns one extra compounding period.

About this tool

Compound growth is simulated one period at a time rather than collapsed into a closed-form formula — so contribution timing, compounding frequency and multi-decade horizons all produce the honest number. The effective annual rate (EAR) sits next to the nominal rate so the cost of infrequent compounding is visible.

The chart overlays cumulative contributions against the balance: the widening gap is interest at work. A yearly schedule (downloadable as CSV) backs every figure on screen.

How to use

  1. Set the plan

    Initial amount, monthly contribution, expected annual return and horizon in years.

  2. Choose mechanics

    Compounding frequency (annual/quarterly/monthly) and contribution timing (beginning or end of period).

  3. Read the split

    Final balance, total contributed, interest earned and the interest-share bar.

  4. Export

    Copy the summary or download the yearly schedule as CSV for spreadsheets or an advisor.

Use cases

Retirement projection

Sketch long-horizon growth of regular contributions at a conservative rate.

Frequency comparison

See how EAR and final balance shift between annual and monthly compounding.

Common mistakes

Mistake:Comparing nominal rates across products with different compounding

Fix:Compare EARs — 12% monthly-compounded is ~12.68% effective, 12% annual is 12%.

Mistake:Treating the projection as guaranteed

Fix:Markets vary; sequence risk and fees are outside this model. Use it as a nominal, pre-cost sketch.

Frequently asked questions

References & standards