Compound interest calculator

Estimate your ending balance, interest earned, and total contributions over time. Supports recurring contributions, compounding frequency, and contribution timing.

USD
USD
This is how much you add each contribution period. You can enter 0.
yr
You can use decimals (example: 7.5 years).
%
This is the yearly rate. It is an estimate (real returns can change).
Monthly is the most common. Weekly and biweekly show more frequent contributions.
Compounding is when interest is added back to the balance (interest-on-interest).
Beginning-of-period means each contribution has one extra period to grow.
%
If you enter 2%, the results also show a low case (rate minus 2%) and high case (rate plus 2%).
How to use compound interest calculator
  1. Enter your starting balance: This is the amount you have today (your initial deposit).
  2. Enter your contribution amount: This is how much you add each time you contribute. Set it to 0 if you will not add anything.
  3. Enter years to grow: How long you plan to leave the money invested or saved. Decimals are OK (example: 7.5).
  4. Enter the annual rate: Your expected average return per year (percent). This is an estimate.
  5. Open Advanced options (optional): Change contribution frequency (monthly, weekly, etc.), compounding frequency, and whether contributions happen at the beginning or end of each period.
  6. Click Calculate: Review the ending balance, interest earned, and the balance-by-year chart. Use “More details” for the breakdown.
Tip: If you want a simple default, leave Advanced options alone. Monthly contributions with monthly compounding is the common setup.
Methodology and sources

This calculator estimates how a balance can grow when you start with an initial amount and then add a fixed contribution on a schedule. It assumes a fixed annual rate and applies it evenly over each contribution period.

This is a projection. Real-world returns vary, and taxes, fees, minimum balance rules, and rate changes are not included.
Step 1: convert the annual rate into an effective annual yield (APY-style)

You enter a nominal annual rate (the percent per year) and choose a compounding frequency. The calculator converts that nominal rate into an effective annual yield (an APY-style estimate) using:

effAnnual = (1 + r / m)^m – 1 r = nominal annual rate as a decimal (example: 7% -> 0.07) m = compounding periods per year (example: 12 monthly, 365 daily)

The output label “Effective annual yield (APY estimate)” is meant as a plain-language way to show how compounding changes the same nominal rate. For deposit accounts in the US, “APY” is defined and calculated under Regulation DD (Truth in Savings), with a standard method for annualising compounded returns.

Step 2: convert to a per-contribution-period rate

Contributions can be monthly, weekly, biweekly, or yearly. The calculator converts the effective annual yield into a per-contribution-period rate:

iPer = (1 + effAnnual)^(1 / f) – 1 f = contributions per year (example: 12 monthly, 52 weekly)

This is an approximation that keeps the same effective annual yield while spreading growth across the chosen contribution schedule.

Step 3: grow the balance with contributions (timing matters)

The calculator runs a step-by-step simulation for N contribution periods, where: N is rounded to the nearest whole period based on your “Years to grow” and contribution frequency.

End of period (most common): B_t = B_(t-1) * (1 + iPer) + C Beginning of period: B_t = (B_(t-1) + C) * (1 + iPer) B_0 = starting balance C = contribution each period
  • “Beginning of period” gives each contribution one extra period of growth (often called an “annuity due” setup in finance textbooks).
  • “End of period” means the contribution is added after that period’s interest is applied (often called an “ordinary annuity” setup).
How totals are computed
  • Total contributions = C multiplied by the number of contribution periods.
  • Total principal (your money) = starting balance + total contributions.
  • Interest earned = ending balance – total principal.
Rate range (optional)

If you enter a rate range, the calculator runs two extra simulations: one at (rate minus range) and one at (rate plus range), with rates floored at 0% and capped at 100%. This is a simple “what if” sensitivity check, not a probability forecast.

What the chart shows

The chart plots the projected balance at yearly checkpoints. The dashed gray line is your starting balance. This chart is meant to show the shape of growth over time, not day-to-day movement.

Important limitations
  • Assumes a constant rate and constant contribution amount.
  • No taxes, fees, contribution limits, withdrawals, or minimum balance rules.
  • “Daily” compounding uses m = 365 as a standard estimate; real institutions can differ in how they apply daily accrual and posting.
  • “Years to grow” is converted into a whole number of contribution periods using rounding, so very small changes in years can change N by 1 period.
Sources
US SEC Investor.gov, “Compound Interest Calculator”: investor.gov
eCFR (CFPB), Regulation DD (Truth in Savings), Appendix A to Part 1030 (APY calculation methods): ecfr.gov
OpenStax, Contemporary Mathematics, “Investments” (future value and payment-to-goal concepts): openstax.org
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