Compound Interest Calculator

See how your investments grow over time with the power of compound interest.

Initial Investment ($)

Monthly Contribution ($)

Annual Interest Rate (%)

Typical long-term stock market returns: 6-8% per year

Time Period (Years)

The Magic of Compound Interest

Compound interest is when you earn returns on your returns. Your money grows exponentially over time, not just linearly. This is why starting early makes such a huge difference.

Example: If you invest $5,000 initially and add $500/month for 20 years at 7% annual returns, you'll have over $260,000—even though you only contributed $125,000.

Key takeaway: Time is your greatest asset. Start investing as early as possible!