Compound Interest Calculator
See how your money grows over time with the power of compounding
Future Value
$31,998.32
After 10 years at 5% APR (5.12% APY)
Total Contributions
$22,000.00
Interest Earned
$9,998.32
APR vs APY
Your 5% APR with monthly compounding equals 5.12% APY. Convert APY ↔ APR →
| Year | Balance | Contributions | Interest |
|---|---|---|---|
| 1 | $11,739.50 | $11,200.00 | $539.50 |
| 2 | $13,568.01 | $12,400.00 | $1,168.01 |
| 3 | $15,490.06 | $13,600.00 | $1,890.06 |
| 4 | $17,510.44 | $14,800.00 | $2,710.44 |
| 5 | $19,634.20 | $16,000.00 | $3,634.20 |
| 6 | $21,866.60 | $17,200.00 | $4,666.60 |
| 7 | $24,213.23 | $18,400.00 | $5,813.23 |
| 8 | $26,679.91 | $19,600.00 | $7,079.91 |
| 9 | $29,272.79 | $20,800.00 | $8,472.79 |
| 10 | $31,998.32 | $22,000.00 | $9,998.32 |
How Compound Interest Works
Compound interest is often called the "eighth wonder of the world" because of its powerful ability to grow wealth over time. Unlike simple interest, which only earns on the principal, compound interest earns interest on your interest.
The more frequently interest compounds, the faster your money grows. This is why APY (Annual Percentage Yield) is always higher than APR (Annual Percentage Rate) when compounding occurs more than once per year.
A = P(1 + r/n)nt
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times compounded per year
- t = Time in years
A quick way to estimate how long it takes to double your money: divide 72 by your interest rate.
At 5%, your money doubles in approximately 14.4 years