Finance

Compound Interest Calculator

Estimate future value using compounding frequency, annual return, and monthly deposits.

Calculator

Results

  • Future value
    $248,758.05
  • Total contributions
    $106,000.00
  • Interest earned
    $142,758.05

Formula

FV = P(1 + r/m)(mt) + C × ((1 + r/m)(mt) − 1) ÷ (r/m), where P is principal, r is annual rate, m is compounds/year, t is years, and C is per-period contribution.

Use this formula with the live inputs above to test scenarios instantly.

Assumptions

  • Returns are constant and compounded at a fixed frequency.

How this formula works

Compound growth combines two engines: reinvested returns and recurring contributions. The first term in the equation grows your starting principal, while the second term accumulates a stream of deposits over the same compounding horizon.

This framing is useful for long-term investing because it separates how much of your future value comes from contributions versus growth. You can quickly test sensitivity to return assumptions, contribution amount, and investment duration.

References & citation

Use these references when documenting assumptions, and copy the block below when citing this calculator.

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