Calculate how your money grows with compound interest. Enter your starting amount, monthly contributions, interest rate, and time period to see detailed projections.
Compound interest is often called the eighth wonder of the world. Unlike a flat return, compounding means your earnings generate their own earnings. Each year, the base on which interest is calculated grows — not just from what you put in, but from the returns you've already accumulated.
Consider someone who starts with $10,000 and contributes $500 per month at a 7% annual return. After 10 years, they'll have roughly $106,000. Only $70,000 came from their own pocket. The remaining $36,000 was generated entirely by compound growth.
Monthly compounding applies interest 12 times per year, meaning each month's gains are included in the next month's calculation. Over long time horizons, the difference between monthly and yearly compounding can add up to thousands of dollars.