Does this account for monthly compounding?

No — this calculator compounds once per year. Monthly compounding would produce a slightly higher balance.

Finance

Compound Interest Calculator

Future value with annual compounding

Runs locally in your browser

Principal ($)

Annual rate (%)

Years

Projects how a lump-sum investment grows when interest compounds annually at a fixed rate.

Who it's for: Savers, investors, and students comparing long-term growth of CDs, brokerage accounts, or retirement contributions.

Uses the standard formula: future value = principal × (1 + rate)^years.

Shows both the ending balance and total interest earned over the period.

Assumes annual compounding with no additional deposits or withdrawals.

Enter your starting Principal in dollars (e.g., $10,000 for an initial deposit).
Set the Annual rate as a percentage (e.g., 7 for a 7% APY).
Enter the number of Years you plan to leave the money invested.
Review Future value — your projected balance at the end of the period.
Compare Interest earned to see how much growth came from compounding versus your original deposit.
Run the calculation again with different rates or time horizons to compare scenarios.

Real returns are often lower after taxes and inflation — pair this with the inflation calculator for a fuller picture.
For monthly contributions, use the annuity future value calculator instead.

Does this account for monthly compounding?: No — this calculator compounds once per year. Monthly compounding would produce a slightly higher balance.