Compound Interest Calculator - Calculate Savings & Investment Growth
Savings & Investment Parameters
Future Balance Summary
Future Value
$0.00
Total Principal Invested
$0.00
Total Interest Earned
$0.00
Annual Growth Schedule
| Year | Total Contributions | Interest Earned | Total Interest | Ending Balance |
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Frequently Asked Questions
What is compound interest and how does it work?
Compound interest is interest calculated on the initial principal as well as the accumulated interest from previous periods. Over long timeframes, compound interest creates exponential wealth growth.
How does compounding frequency affect total returns?
The more frequently interest is compounded (e.g., daily or monthly vs. annually), the faster your balance grows, because interest starts earning additional interest sooner.
What average return rate should I assume for stock market investments?
Historically, major market indexes like the S&P 500 have averaged an annualized return of around 7% to 10% before inflation adjustments over multi-decade spans.