Can I add monthly contributions?

Yes — monthly contributions are included in the calculation.

Subtract inflation rate from returns to estimate real growth.

Does this include taxes?

No. Consider tax on interest or capital gains separately.

Compound Interest Calculator

Q: What is compounding frequency?

Annually, semiannually, quarterly, monthly, daily etc.

Q: Nominal vs effective rate?

Effective rate accounts for compounding frequency.

Calculate future value with compounding + optional monthly contributions.

💰 Future Value 📈 Total Interest ➕ Monthly Contributions 🔒 Runs in browser

Initial Amount (P)

Your starting investment / deposit.

Annual Interest Rate (r %)

Time Period (years)

Compounding Frequency (n)

Monthly Contribution (optional)

Set to 0 if you don’t add monthly deposits.

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Enter values to calculate future value.

Tip: Compare monthly vs yearly compounding to see how frequency changes the final amount.

Explanation

Compounding means you earn interest not only on your initial amount, but also on the interest already added. The more frequently interest is compounded (monthly vs yearly), the higher the final amount — assuming the same nominal rate. If you add a monthly contribution, the calculator also includes growth on those deposits over time.

Formula

A = P(1 + r/n)^(n·t)
If monthly contributions (PMT):
A = P(1+i)^m + PMT · [((1+i)^m - 1)/i]
where i = (r/n), m = n·t (approx for same-frequency deposits)

FAQs

What is compounding frequency?

It is how often interest is added (monthly, quarterly, yearly). More frequent compounding increases the effective annual rate.

Nominal vs effective rate?

Nominal rate is the stated yearly rate. Effective rate includes compounding impact.

Can deposits be periodic?

Yes. Monthly contributions are included (similar to SIP/annuity style growth).

Inflation adjusted?

To estimate real returns, subtract inflation from the annual rate (approx).

Taxes?

This calculator does not include tax. Apply tax rules based on your investment type.

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