Welcome To The Money Calculator
Use our compound interest calculator to see just how powerful compounding really is and how your money will grow based on different variables.
Compound Interest Calculator
Total Principal:
Total Interest:
Total Balance:
Compound Interest Calculator Articles
Understanding Compount Interest Calculators
A compound interest calculator is a powerful tool that helps you understand how your investments can grow over time. It uses the principles of compound interest, where you earn interest not only on your initial investment but also on the interest accumulated from previous periods. Read more about the Rule of 72 to learn how long it takes for your money to double! As time passes…10 years, 20 years, 30 years, this can lead to exponential growth of your investment. If you're saving for retirement, a big purchase, or just looking to grow your wealth, a compound interest calculator can give you the information to see how you’ll do with your investments.
How to Use a Compound Interest Calculator
Here's a step-by-step guide on using the compound interest calculator above:
- Initial Investment - Enter the amount of money you're starting with. This could be your current savings, an initial deposit, or any lump sum you plan to invest initially.
- Additional Monthly Investments - Input the amount you plan to add to your investment regularly. Consider how much you can comfortably contribute to your investment on a monthly basis.
- Additional Investment Frequency - Choose how often you'll be making these additional investments. Will you be making them each month or one time annually?
- Interest Rate - Enter the expected annual interest rate. For reference, the average S&P 500 return rate for the last 30 years is 9.9%.
- Number of Years - Specify the duration for which you plan to invest or save. Think long-term, especially for goals like retirement, as compounding occurs the most with a longer time-frame
Tips for Effective Usage of This Calculator
- Experiment with Different Scenarios: Try different combinations of monthly investments and interest rates to see how changes can impact your investment growth.
- Be Realistic with Interest Rates: Use a rate that aligns with current market conditions and the type of investment you’re considering. Using an interest rate of 80% probably isn’t realistic.
- Total Years Experimentation: You can quickly see how extending the number of years can dramatically increase your investment.
- Use it for Goal Setting: This calculator can be a great tool to help set savings goals and understand what it takes to reach them. Remember, set a goal and STICK TO IT!