Compound Interest Parameters
$
%
years
Final Amount
$40,387
Interest Earned
$30,387
Starting Principal
$10,000
Total Growth
304%
Principal vs Interest Earned
Principal
$10,000 (25%)Interest Earned
$30,387 (75%)Compound Growth Curve
- Total Value
- Principal
- Interest
Yearly Growth Projection
| Year | Total Value | Principal | Interest |
|---|---|---|---|
| Yr 1 | $10,723 | $10,000 | $723 |
| Yr 2 | $11,498 | $10,000 | $1,498 |
| Yr 3 | $12,329 | $10,000 | $2,329 |
| Yr 4 | $13,221 | $10,000 | $3,221 |
| Yr 5 | $14,176 | $10,000 | $4,176 |
| Yr 6 | $15,201 | $10,000 | $5,201 |
| Yr 7 | $16,300 | $10,000 | $6,300 |
| Yr 8 | $17,478 | $10,000 | $7,478 |
| Yr 9 | $18,742 | $10,000 | $8,742 |
| Yr 10 | $20,097 | $10,000 | $10,097 |
| Yr 11 | $21,549 | $10,000 | $11,549 |
| Yr 12 | $23,107 | $10,000 | $13,107 |
| Yr 13 | $24,778 | $10,000 | $14,778 |
| Yr 14 | $26,569 | $10,000 | $16,569 |
| Yr 15 | $28,489 | $10,000 | $18,489 |
| Yr 16 | $30,549 | $10,000 | $20,549 |
| Yr 17 | $32,757 | $10,000 | $22,757 |
| Yr 18 | $35,125 | $10,000 | $25,125 |
| Yr 19 | $37,665 | $10,000 | $27,665 |
| Yr 20 | $40,387 | $10,000 | $30,387 |
About This Calculator
The compound interest calculator shows you exactly how money grows when your interest also earns interest. Often called the eighth wonder of the world, compound interest is the most powerful force in personal finance and investing.
How It Works
Compound interest formula: A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times interest compounds per year, and t is time in years. More frequent compounding results in higher returns.
A = P(1 + r/n)^(nt)
Where: A = Final amount, P = Principal, r = Annual rate, n = Compounding frequency per year, t = Time in years
Key Benefits
- 1See the dramatic long-term impact of compound growth
- 2Compare different compounding frequencies
- 3Understand why starting early is so powerful
- 4Visualize the difference between compound and simple interest
Expert Tips
- →Daily compounding yields slightly more than monthly or annual
- →The Rule of 72: divide 72 by your interest rate to find years to double your money
- →Start saving early — 10 years makes an enormous difference over a lifetime
- →High-yield savings accounts and CDs use compound interest to your advantage