Financial Tool
Compound Interest Calculator
Explore the power of compounding. Calculate investment growth with monthly contributions, variable rates, and compounding frequencies.
%
Estimated Future Value
$0.00
Principal: 30%
Deposits: 30%
Interest: 40%
Total Deposits:
$0.00
Total Interest Accrued:
$0.00
Annual Growth Projections
| Year | Deposits (Yearly) | Interest (Yearly) | Total Interest | Total Balance |
|---|
The Power of Compound Interest
Unlike simple interest, which is calculated only on the principal amount, compound interest earns interest on both the initial principal and the accumulated interest. Over time, compounding creates exponential growth, significantly boosting your future net worth.
Compound Interest Formula
A = P(1 + r/n)^(nt) + PMT * [ (1 + r/n)^(nt) - 1 ] / (r/n)
Where A is the future value of the investment, P is the principal, r is the annual interest rate, n is the compounding frequency per year, t is the number of years, and PMT is the monthly deposit amount.