Compound Interest Calculator

Compound interest is calculated using the formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial investment), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the time in years.

Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest. For example, with simple interest, $1,000 at 5% for 10 years would earn $500 in interest. With compound interest (compounded annually), it would earn approximately $629 in interest.

Generally, the more frequently interest is compounded, the more you'll earn. Daily compounding will yield slightly more than monthly, which yields more than quarterly or annually. However, the difference between daily and monthly compounding is often minimal for practical purposes.

Monthly contributions are regular additional investments you make to your account. These contributions also earn compound interest from the moment they're invested. Regular contributions can significantly accelerate your wealth building due to the power of compound growth.

Enter your current retirement savings as the initial investment, your expected annual return as the interest rate, set monthly contributions to your planned regular investments, and set the time period to your years until retirement. The calculator will show how your retirement savings could grow over time.

This calculator provides mathematical projections based on the inputs you provide. Real investment returns fluctuate and are not guaranteed. Use this as a planning tool to understand potential growth patterns, but always consult with financial professionals for investment advice.

Yes! The calculator works with any currency. Simply enter your amounts in your preferred currency. The mathematical calculations remain the same regardless of the currency used.