Principal
The initial amount is the starting balance before growth and before any recurring contributions.
Calculator
Compound Interest Calculator With Monthly Contributions
Use this compound interest calculator to estimate how your savings or investments could grow. Enter a starting amount, an annual interest rate and the number of years, then add a monthly contribution to see your future value, total contributions and interest earned.
You can compare annual, semiannual, quarterly, monthly and daily compounding. Results are estimates based on a fixed rate, not guaranteed returns.
Trust and methodology
How This Calculator Is Reviewed
- Calculation type
- Compound-interest future-value estimate
- Jurisdiction
- General nominal-rate projection; no country-specific tax treatment
- Last reviewed
- 2026-07-29
This is an informational compound-growth estimate based on entered assumptions, not an investment recommendation or guaranteed return.
Primary Sources
- Compound Interest CalculatorSEC Investor.gov - United StatesSupports common consumer inputs for starting amount, contributions, time, return, and compounding frequency.
- Compound InterestSEC Investor.gov - United StatesSupports the plain-language compound-interest concept.
- How does compound interest work?Consumer Financial Protection Bureau - United StatesSupports the example that $1,000 at 5% annual compounding grows to $1,102.50 after two years.
- Appendix A to Part 1030 - Annual Percentage Yield CalculationBoard of Governors of the Federal Reserve System - United StatesSupports careful distinction between informational effective annual yield and regulatory APY disclosures.
Known Limitations
- Taxes, account fees, fund expenses, and advisory fees are excluded.
- Inflation and purchasing-power changes are not modeled.
- Withdrawals, irregular cash flows, variable rates, market volatility, and investment risk are not included.
- Monthly contributions are supported only with monthly compounding.
- Daily compounding uses 365 periods per year and does not model banking day-count rules.
- The calculator does not provide guaranteed returns or investment advice.
Found a calculation issue, outdated source, accessibility problem, or unclear assumption? Contact us.
Enter Growth Assumptions
Defaults are examples only, not recommendations. The calculator uses the entered nominal annual rate and selected compounding frequency.
Methodology
How Compound Interest Works
Compound interest means growth is calculated on the starting amount and on prior interest. Over time, that compounding effect can make interest earned a larger share of the ending balance.
This calculator uses a nominal annual rate divided by the selected compounding frequency. It also reports the effective annual yield implied by that nominal rate and frequency, but it does not label that value as regulatory APY.
The calculator uses the standard compound interest formula. For a starting amount with no contributions:
Future value = P × (1 + r / n)^(n × t)where P is the starting amount, r is the annual interest rate as a decimal, n is the number of compounding periods per year and t is the number of years. Monthly contributions are added each month and grow at the same rate.
Contributions
Fixed monthly contributions can be added at the beginning or end of each month when monthly compounding is selected.
Interest Earned
Interest earned is the estimated future value minus the initial amount and total recurring contributions.
For more examples and a comparison with simple interest, read how compound interest works.
Why Monthly Contributions Require Monthly Compounding
This calculator does not combine monthly contributions with annual, quarterly, semiannual, or daily compounding. Those combinations require separate event-timing assumptions, and silently converting them to a monthly rate could mislead users.
Worked Example
Example: $5,000 initial amount, $250 monthly contribution, 6% nominal annual rate, 5 years, monthly compounding, and end-of-month contributions.
- Future value
- $24,186.76
- Total contributions
- $20,000.00
- Interest earned
- $4,186.76
In this example, the ending balance includes the starting amount, $15,000 in monthly contributions, and $4,186.76 in estimated interest.
Limitations
- Taxes, fees, account expenses, and advisory fees are not modeled.
- Inflation and purchasing-power changes are not included.
- Withdrawals, irregular cash flows, variable rates, and market volatility are excluded.
- Continuous compounding and mixed contribution/compounding frequencies are not included in this estimate.
- The calculator does not provide investment, tax, legal, or financial advice.
Compound Interest Calculator FAQ
What is compound interest?
Compound interest means interest can earn additional interest over time. The calculator estimates growth using the entered nominal annual rate and selected compounding frequency.
How is compound interest calculated?
The calculator applies compound interest to the initial amount and, when supported, fixed monthly contributions.
Does compounding frequency make a difference?
Yes. More frequent compounding can slightly increase growth for the same nominal annual rate. Daily compounding uses 365 periods per year in this calculator.
Can I include monthly contributions?
Yes, fixed monthly contributions are supported when compounding frequency is monthly. Mixed contribution and compounding frequencies are not included in this estimate.
Are contributions added before or after interest?
You can choose end-of-month or beginning-of-month timing. Beginning-of-month contributions have one extra month of growth compared with end-of-month contributions.
What is effective annual yield?
It is the annual yield implied by the entered nominal rate and compounding frequency. It is informational and is not labeled as regulatory APY.
Does this calculator include taxes or fees?
No. Taxes, account fees, investment expenses, and advisory fees are excluded because they depend on account type, jurisdiction, and personal circumstances.
Does it adjust for inflation?
No. Results are nominal and do not estimate future purchasing power.
Are the results guaranteed?
No. The calculator assumes a constant entered rate and does not model market volatility, changing rates, investment risk, or guaranteed returns.
Can I use this for any currency?
Yes, as a neutral dollar-style display. The calculator does not perform currency conversion or country-specific tax calculations.
Can I calculate daily compound interest?
Yes. Choose 'Daily (365 periods/year)' as the compounding frequency. Daily compounding is available for a starting amount; monthly contributions require monthly compounding in the current version.
What is the difference between simple and compound interest?
Simple interest is paid only on your original amount. Compound interest is paid on your original amount plus the interest already earned, so growth speeds up over time.
How long will it take to double my money?
A quick estimate is the Rule of 72: divide 72 by your annual interest rate. At 6%, money doubles in about 12 years. To compare estimated balances, enter your amount and rate in the calculator and adjust the number of whole years.
Interest and Savings Guides
How Does Compound Interest Work? Simple Examples explains the formula, compounding frequency, and regular contributions with worked examples.
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This calculator provides estimates for informational purposes only. It assumes a constant entered rate and does not model taxes, fees, inflation, market volatility, withdrawals, or guaranteed returns. Read the full disclaimer.