Compound Interest Calculator
See how your savings or investments grow over time with the power of compounding, including optional monthly contributions.
Optional
Final balance
$27,356.79
Balance growth over time
Chart data by year: Year 1: $6,600.71, Year 2: $8,317.13, Year 3: $10,157.64, Year 4: $12,131.19, Year 5: $14,247.42, Year 6: $16,516.62, Year 7: $18,949.87, Year 8: $21,559.01, Year 9: $24,356.78, Year 10: $27,356.79.
What Your Result Means
Your final balance is the total value of your investment after the time period you entered, combining your original principal, any monthly contributions, and the interest earned along the way. Interest earned shows how much of that growth came purely from compounding, not from money you added yourself.
How It Is Calculated
Calqora applies the compound interest formula period by period, adding your interest rate for each compounding period and any contribution amount before moving to the next period. This period-by-period approach accurately captures the effect of contributions made throughout the year, not just a single lump-sum formula.
Worked Example
Starting with $5,000, contributing $100 per month, at a 7% annual rate compounded monthly for 10 years, your final balance would grow to approximately $27,900 - with about $10,900 of that coming from interest earned, not contributions.
Important Assumptions
- Assumes a constant interest rate for the entire time period - real returns fluctuate.
- Monthly contributions are assumed to be made consistently every month.
- Does not account for taxes, fees, or inflation.
Frequently Asked Questions
- What is compounding frequency?
- It's how often interest is calculated and added to your balance. More frequent compounding (like daily vs. annually) slightly increases growth for the same stated rate.
- Is this guaranteed growth?
- No - this calculator assumes a constant rate you specify. Real investments like stocks fluctuate; savings accounts and CDs are closer to a fixed rate.
- Should I include contributions?
- Yes if you plan to add money regularly, like a monthly transfer into a savings or investment account - this shows the combined effect of contributions plus compounding.
Related Calculators
Methodology
This calculator compounds interest period by period based on your selected frequency, applying contributions before each period's interest calculation. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.