Compound Interest Calculator with Reverse Mode

Input Parameters

Initial Investment ($)

$5,000

Annual Interest Rate (%)

Time Period (Years)

10 years

Compounding Frequency

Monthly Contribution ($)

$100

Goal Parameters

Target Amount ($)

$50,000

Find Missing Variable

Annual Interest Rate (%)

Initial Investment ($)

$5,000

Time Period (Years)

10 years

Monthly Contribution ($)

$100

Compounding Frequency

Results

Total Value After 10 Years

$16,470.09

Interest Earned: $11,470.09

Initial Investment

$5,000.00

Total Contributions

$12,000.00

Annual Rate

Compounding

Monthly

How Compound Interest Works

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It causes wealth to grow faster over time because you earn interest on your interest.

The formula for compound interest with regular contributions is:

A = P(1 + r/n)^nt + PMT × [((1 + r/n)^nt - 1) / (r/n)]

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
PMT = the monthly contribution amount

Forward Calculator: Enter your investment details to see how much your money will grow over time.

Reverse Calculator: Set a financial goal and find out what initial investment, monthly contribution, or time period you need to reach it.

Input Parameters

Goal Parameters

Results

Growth Over Time

How Compound Interest Works