Financial Math Health Other

💰 Compound Interest Calculator

Calculate the power of compound interest for your investments and savings. See how your money grows over time with different interest rates, compounding frequencies, and additional contributions.

💵 Investment Details

💰 Initial Principal:
📈 Annual Interest Rate:
⏰ Time Period:
🔄 Compound Frequency:
➕ Additional Contribution:

🧮 Compound Interest Formula

A = P(1 + r/n)^(nt)

A = Final amount
P = Principal
r = Annual interest rate
n = Compounding frequency
t = Time in years

🚀 The Power of Compound Interest

Compound interest is often called the "eighth wonder of the world" because of its incredible power to grow wealth over time. Unlike simple interest, compound interest earns interest on both the principal and previously earned interest, creating exponential growth.

🔑 Key Factors Affecting Growth

Factor Impact Strategy
⏰ Time Exponential effect Start investing early
📈 Interest Rate Higher rate = faster growth Seek competitive rates
🔄 Compounding Frequency More frequent = better Choose daily/monthly compounding
➕ Regular Contributions Accelerates growth Automate monthly investments

💡 Investment Examples

🎯 The Early Bird Advantage

Scenario A: Start at age 25, invest $200/month for 10 years, then stop

Scenario B: Start at age 35, invest $200/month for 30 years

Result: Despite investing less money, Scenario A often ends up with more due to compound interest!

📊 Compounding Frequency Comparison

Frequency Times per Year $10,000 @ 7% for 10 years
Annually 1 $19,671.51
Semi-annually 2 $19,898.45
Quarterly 4 $20,016.43
Monthly 12 $20,096.61
Daily 365 $20,137.16

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