Investment Tools
Compound Interest Calculator
Discover the power of compounding. Enter your principal, rate, and time period — with optional regular contributions — to see how your money grows year by year.
Configure
Investment parameters
Compounding frequency
Schedule
Year-by-year growth
| Year | Balance | Contributions | Interest earned | Growth |
|---|---|---|---|---|
| 1 | $13,201 | $12,400 | $801 | |
| 2 | $16,634 | $14,800 | $1,834 | |
| 3 | $20,315 | $17,200 | $3,115 | |
| 4 | $24,262 | $19,600 | $4,662 | |
| 5 | $28,495 | $22,000 | $6,495 |
How compound interest works
01
Enter your principal
Start with your initial investment amount and optional regular contribution (monthly, quarterly, etc.).
02
Set rate & term
Enter your expected annual return rate and investment horizon. Choose how often interest compounds.
03
Watch it grow
See the year-by-year table showing how principal, contributions, and interest combine to grow your wealth.
Frequently asked questions
What is the difference between simple and compound interest? ▼
Simple interest is calculated only on the principal. Compound interest is calculated on the principal AND previously earned interest, causing exponential growth over time.
How often should interest compound? ▼
The more frequently interest compounds, the more you earn. Daily compounding yields slightly more than monthly, which yields more than annual. For most savings accounts, compounding is monthly or daily.
What is the Rule of 72? ▼
Divide 72 by your annual return rate to estimate how many years it takes to double your money. At 6% return, money doubles in roughly 12 years (72 ÷ 6 = 12).
Disclaimer: Projections assume a constant rate of return. Actual investment returns vary. Past performance does not guarantee future results.
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