Compound Interest Calculator - With Regular Deposits and Withdrawals
Compound Interest Calculator
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Calculation Results
Final Amount
Total Interest Earned
Initial Balance
Total Withdrawals
Total Additional Deposits
Effective Annual Rate
Interest From Initial Investment
Interest From Deposits or Withdrawal
Annualized Return (CAGR-Compound Annual Growth Rate)
Accumulation Table
Investment Visualization
How Is Compound Interest Calculated?
The compound interest formula is derived from the principle that each period's interest becomes part of the principal for the next period's calculation:
Year 1: A₁ = P(1 + r/n)ⁿ
Year 2: A₂ = P(1 + r/n)²ⁿ
Year t: Aₜ = P(1 + r/n)ⁿᵗ
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times interest compounds per year
- t = Number of years
How Much Is $10,000 Worth at the End of 5 Years if the Interest Rate of 6% Is Compound Monthly?
If you put $10,000 into a five-year savings account with a 6% annual interest rate that compounds monthly, after five years your account balance will grow to $13,488.50.
| Initial Investment Amount | 5 Years at 6% Interest ($) | 10 Years at 6% Interest ($) |
|---|---|---|
| $5,000 | $6744.25 | $9096.98 |
| $10,000 | $13488.50 | $18193.97 |
| $15,000 | $20232.75 | $27290.95 |
| $20,000 | $26977.00 | $36387.93 |
| $25,000 | $33721.25 | $45484.92 |
| $30,000 | $40465.50 | $54581.90 |
How Much Will $10,000 Invested Be Worth in 20 Years?
$10,000 invested at 7% compounded annually for 20 years would be worth approximately $38,696.84.
| Initial Investment Amount | 20 Years at 7% Interest ($) | 25 Years at 7% Interest ($) |
|---|---|---|
| $5,000 | $19348.42 | $27137.16 |
| $10,000 | $38696.84 | $54274.33 |
| $15,000 | $58045.27 | $81411.49 |
| $20,000 | $77393.69 | $108548.65 |
| $25,000 | $96742.11 | $135685.82 |
| $30,000 | $116090.53 | $162822.98 |
If You Deposit $5,000 With a 6% Annual Interest Rate That Compounds Monthly, and Then Add $200 at the End of Each Month, How Much Will You Have After 5 Years?
You'll have $20,698.26, which includes $3,698.26 in interest earned and $12,000 in additional deposits.
| Initial Investment Amount | 5 years, $200 monthly contribution | 10 years, $200 monthly contribution |
|---|---|---|
| $5,000 | $20,698.26 | $41872.85 |
| $10,000 | $27442.51 | $50969.84 |
| $15,000 | $34186.76 | $60066.82 |
| $20,000 | $40931.01 | $69163.80 |
| $25,000 | $47675.26 | $78260.79 |
| $30,000 | $54419.51 | $87357.77 |
References
For additional information about investing and compound interest, consult these authoritative government sources:
- U.S. Securities and Exchange Commission: Investor.gov - The SEC provides comprehensive resources to help investors understand compound interest and make informed investment decisions
- Consumer Financial Protection Bureau: CFPB.gov - Consumer protection and financial education resources
- Federal Trade Commission: FTC.gov - Consumer protection and investment fraud prevention
- Internal Revenue Service: IRS.gov - Tax implications of investments and retirement accounts
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