Compound Interest Calculator
See how your savings grow over time with the power of compound interest.
$
$
%
years
Your Results
Total Contributions
$70,000
Interest Earned
$18,347
Final Balance
$88,347
*Assumes daily compounding with monthly contributions
Year-by-Year Breakdown
| Year | Contributions | Interest | Balance |
|---|
How Compound Interest Works
Compound interest means you earn interest on your interest. Unlike simple interest (calculated only on your principal), compound interest accelerates growth over time.
The Formula
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Where: P = principal, r = annual rate, n = compounds per year, t = years, PMT = monthly payment
Why This Matters for Your Savings
At 4% APY, $10,000 with $500/month contributions becomes $88,347 after 10 years. That's $18,347 in free money from interest alone.
The same money at Chase's 0.01% APY would earn just $35 over 10 years. That's a $18,312 difference.