Alleex

Compound Interest Calculator

See how your money grows over time with the power of compound interest.

$
$
%
10 years

Future Value

$107,143.85

Total Contributions$70,000.00
Total Interest Earned$37,143.85
Initial Deposit$10,000.00
Total Contributions$70,000.00
Total Interest$37,143.85
Future Value$107,143.85
Contributions (65.3%)Interest (34.7%)

How Compound Interest Works

Compound interest is the interest you earn on both your original deposit and on the interest that has already been added to your account. Unlike simple interest, which is calculated only on the principal, compound interest accelerates the growth of your savings over time. The more frequently interest is compounded, the faster your money grows.

The Compound Interest Formula

The basic compound interest formula is A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. When regular contributions are included, the future value of the annuity portion is added separately.

Tips to Maximize Compound Interest

  • Start saving as early as possible — time is the most powerful factor
  • Choose accounts with more frequent compounding (daily or monthly)
  • Make regular monthly contributions, even if small
  • Reinvest all interest and dividends rather than withdrawing them
  • Look for higher interest rates through high-yield savings accounts or CDs