Compound Savings Calculator
Visualize how consistent contributions and time grow your wealth.
Monthly (12/year)
Quarterly (4/year)
Semi-Annually (2/year)
Annually (1/year)
Total Balance
$0.00
Total Contributions
$0.00
Interest Earned
$0.00
Annualized Yield
0%
How Does Compounding Work?
Compound interest is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. In simpler terms, it is "interest on interest."
The Power of Consistency
When you use this compound savings calculator, you will notice that even small monthly contributions significantly alter the final outcome over a long duration. This is because every dollar added early has more "time in the market" to generate its own returns, which then generate even more returns.
Calculation Formula
Our calculator uses the formula for future value of an ordinary annuity plus the future value of the principal:
FV = P(1 + r/n)^(nt) + PMT * [((1 + r/n)^(nt) – 1) / (r/n)]
- P = Initial Savings
- PMT = Monthly Contribution
- r = Annual Growth Rate (decimal)
- n = Compounding periods per year
- t = Number of years
Real-World Example
If you start with $10,000 and contribute $500 every month for 20 years at an annual growth rate of 8%, your total balance would grow to approximately $335,000. Of that total, only $130,000 would be your actual contributions; the remaining $205,000 would be pure earned growth.