Compound Interest Calculator

Putting money into investment accounts is the key to long term wealth and stability. Use our compound interest calculator to forecast your investment account's value after a certain amount of years.

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What is Compound Interest?

When you have an investment and it's value grows, instead of selling and collecting your money leaving it in to grow for a long period of time can lead to massive gains. This is known as compounding interest, the growth of the portfolio feeds into its own growth, compounding interest.

How to Use our Compound Interest Calculator

Using our tool is easy and free, the steps include:

  1. Enter your initial account value, or initial deposit that you are going to be making and building upon.

  2. Enter the interest rate percentage, without the percent symbol. This can also be called the expected rate of return sometimes. The number should be the yearly rate, not monthly.

  3. Enter the total number of years you plan to keep this account active for.

  4. If you plan to add to the account monthly, enter the number in the monthly contribution field. If you are not going to add anything ever to it, leave it at zero.

  5. Hit calculate and see the expected final value of the account after the period of time you entered as well as the total amount of money you would have invested into the account. You overall profit will be the difference between the two numbers.

Compound Interest - Frequently Asked Questions

Compound interest is great and is something that helps your money grow faster.

In investment terms, you cannot directly lose money due to compound interest. Compound interest will always be related to a gain in value, but it is possible for an investment account to begin to lose money making the compound interest less effective than it once was.

You have to continually search and shop for interest rates, but some of the best assets with compound interest are CDs, HYSA (High Yield Savings Account), stocks, bonds, or IRA investment accounts.

Create Date: September 9, 2024

Last Modified Date: September 9, 2024

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