Compound Interest Calculator

Watch savings grow year by year: enter a starting balance, rate, years and optional yearly additions to see compounding work.

Compound interest pays interest on your interest, and the curve gets steeper every year. Enter a starting balance, an annual return, the number of years and any yearly additions to see the whole journey — including exactly how much of the final balance is your own money versus growth.

The formula

End balance = Principal × (1 + r)^years, plus, for a fixed annual addition A made at each year-end: A × ((1 + r)^n − 1) ÷ r. The tool computes this every year so you can see the growth rate of the growth itself.

The rule of 72

Divide 72 by your annual return to estimate the doubling time: 6% ≈ 12 years, 8% ≈ 9 years, 3% ≈ 24 years. It is a famous approximation and it is surprisingly accurate in the 4–12% range.

The cost of starting late

Invest $2,000 per year at 7%: starting at age 25 gives about $440,000 by 65; starting at 35 gives about $203,000 — ten fewer years costs more than half the outcome. Time in the market beats extra contributions later.

Frequently asked questions

What will $10,000 be worth in 10 years at 5%?
$10,000 × 1.05^10 ≈ $16,289 — about $6,289 of pure growth. Enter it above for the year-by-year view.
Compound vs simple interest?
On $10,000 at 5% for 20 years: simple interest pays $10,000 total; compounding pays about $16,533. The gap widens every year you stay invested.
Is this calculator realistic for stocks?
It is a smooth mathematical model. Real portfolios fluctuate year to year, so treat a steady rate as a long-run average, not a promise.