See how a starting balance and regular monthly contributions grow at your rate and compounding frequency, year after year.
Runs in your browser — nothing is uploaded
Compound interest earns interest on the interest already added, so growth accelerates over time. The frequency matters too: monthly compounding gives slightly more than yearly compounding at the same nominal rate, and the difference grows with the rate and the term.
Monthly contributions are added at the end of each month. The calculator converts your nominal rate into an equivalent monthly rate for the compounding frequency you choose, so the result is exact for that schedule. The effective annual yield shows the true rate once compounding is included.
For a lump sum, the future value is P(1 + r/n)^(nt), where P is the principal, r the annual rate, n the compounding periods per year and t the years. Regular contributions add the future value of a series of payments on top, which this calculator includes.
At 5 percent, yearly compounding gives an effective rate of 5.00 percent, monthly gives about 5.12 percent, and daily about 5.13 percent. The gain from more frequent compounding is real but small compared with time and contributions.
Early in a savings plan most of the balance is what you have put in. Over long periods compounding does more of the work, which is why starting early matters so much.
Not for investments. Savings accounts pay a stated rate, while stocks and funds have returns that vary. Use a realistic average, such as 5 to 7 percent for a diversified portfolio over decades, and test lower returns too.
No. The result is nominal. Inflation reduces what the money can buy, and taxes on interest or gains reduce what you keep. Subtract those effects for a real-terms picture.
No. The figures are calculated in your browser and are not saved.