Compound Interest Calculator
Enter your principal, interest rate, compounding frequency and time period to see exactly how your investment grows year by year. Includes a full growth chart and yearly breakdown table.
Growth over 10 years
Show year-by-year breakdown
| Year | Balance | Interest earned | Total invested | Total interest |
|---|---|---|---|---|
| 1 | $13.3K | +$936.58 | $12.4K | $936.58 |
| 2 | $17.0K | +$1.2K | $14.8K | $2.2K |
| 3 | $20.9K | +$1.5K | $17.2K | $3.7K |
| 4 | $25.1K | +$1.8K | $19.6K | $5.5K |
| 5 | $29.7K | +$2.2K | $22.0K | $7.7K |
| 6 | $34.7K | +$2.6K | $24.4K | $10.3K |
| 7 | $40.0K | +$3.0K | $26.8K | $13.2K |
| 8 | $45.9K | +$3.4K | $29.2K | $16.7K |
| 9 | $52.2K | +$3.9K | $31.6K | $20.6K |
| 10 | $59.0K | +$4.4K | $34.0K | $25.0K |
Visualize the power of compound interest with SolveBar's calculator. Enter your initial investment, interest rate, compounding frequency, and monthly contributions to see your wealth grow year by year with a full chart and breakdown table.
How compound interest works
With simple interest, you earn interest only on your principal. With compound interest, you earn interest on your principal plus all previously earned interest. This creates exponential rather than linear growth over long time horizons.
Compounding frequency matters
Daily compounding produces slightly more than monthly, which produces more than annual compounding for the same stated rate. However the rate and time invested are far more important than compounding frequency.
The impact of regular contributions
Adding regular monthly contributions dramatically outweighs the initial principal over long periods. Starting early and contributing consistently beats starting with a large amount and stopping.
Frequently Asked Questions
What compounding frequency should I choose?
Use the frequency that matches your actual investment. Savings accounts often compound daily. Index funds effectively compound continuously through dividend reinvestment.
Does this account for inflation?
No. The calculator shows nominal returns. To estimate real returns, subtract the expected inflation rate (typically 2-3%) from your interest rate before entering it.
What is a realistic long-term return rate?
US stock market has averaged approximately 10% nominal returns historically, or roughly 7% after inflation. Use conservative estimates for planning.