Compound Interest Calculator

See how your money grows — or find out how much to save for a goal.

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How to Use This Calculator

Investment Growth tab

The default tab. Enter your initial deposit and monthly contribution — the calculator shows your total balance after compound interest. Expand "More options" to adjust the interest rate, compounding frequency, and time period. The default rate reflects a long-term stock market average. For savings accounts, lower it to 3–5%.

Savings Goal tab

Start with your target amount and years to reach it. The calculator reverse-solves: it tells you how much to save each month. If you already have savings, enter them under "More options" as starting balance — this reduces your required monthly contribution.

Compare tab

Enter two scenarios side by side: Option A and Option B. Each row takes an initial deposit, interest rate, and time period. The result shows which option earns more and by how much. Use this to compare a conservative savings account vs. an index fund, or a 10-year vs. 20-year horizon.

Share your result

Every input is encoded in the URL. Click Share, send the link to your partner — they'll open it and see your exact numbers. No re-entering, no screenshots.

The Formula

Compound interest is calculated using this formula:

A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) − 1) / (r/n)]

Where:

The first part, P(1 + r/n)^(nt), calculates the growth of your initial deposit. The second part calculates the accumulated value of your regular contributions. When you move the rate slider in the calculator, you change r — and you can see how even a 1% difference compounds over decades.

The Savings Goal tab uses the same formula but solves for PMT — the monthly amount you need to reach your target.

Example

Alex — saving for a down payment

Alex has $5,000 in savings and wants $40,000 for a house down payment in 5 years. A high-yield savings account offers 4.5% APY, compounded daily.

Savings Goal tab

Target amount$40,000
Years to goal5
Starting balance$5,000
Interest rate4.5%

Result: Alex needs to save $527/month. Of the $40,000 total, $31,620 comes from deposits and $3,380 from interest — money earned while sleeping.

Compare tab

Alex wonders: what if they invest in an index fund at 7% instead of a savings account at 4.5%?

Option A (savings account)$40,362
Option B (index fund)$43,816
Difference$3,454 more with the index fund

The index fund earns more — but comes with risk. The savings account is FDIC-insured. For a 5-year goal with a specific deadline, Alex chose the guaranteed option and opened a high-yield savings account.

Alex shared the link with their partner. Same numbers, same page, no explaining needed.

FAQ

It depends on where you put your money. High-yield savings accounts offer 4–5% (as of 2026). Stock market index funds have historically returned 7–10% annually over long periods, but with significant year-to-year variation. CDs and bonds fall in between. Use the rate your specific account or investment offers — not a generic "average."
APR (Annual Percentage Rate) is the stated rate without compounding. APY (Annual Percentage Yield) includes the effect of compounding. A 5% APR compounded monthly gives an APY of about 5.12%. Banks advertise savings account rates as APY. If you enter APY into this calculator, set compounding to "Annually" since the compounding is already baked into the number.
More frequent compounding means slightly more growth. Monthly compounding at 5% gives $16,470 on $10,000 over 10 years. Daily compounding gives $16,487 — a $17 difference. For most planning purposes, monthly is accurate enough. Check your account terms for the actual frequency.
No — and that's intentional. Tax treatment varies by country, account type (tax-free, tax-deferred, taxable), and your income bracket. Inflation is unpredictable. To approximate after-inflation returns, subtract 2–3% from your interest rate. For a rough after-tax estimate, reduce the rate by your marginal tax rate (e.g., 5% rate × 0.75 = 3.75% after 25% tax).
Because compound interest is exponential, not linear. $10,000 at 5% for 30 years becomes $43,219. At 7%, it becomes $76,123 — 76% more, from just a 2% rate difference. Use the Compare tab to see this for your specific numbers. The longer the time horizon, the bigger the gap.

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