Calculate investment growth with compound interest and monthly contributions
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Final Balance
Initial Investment
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Total Contributions
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Interest Earned
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Inflation-Adjusted
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Return on Investment
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Rule of 72 (double)
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Year
Balance
Interest Earned
Contributions
FREQUENTLY ASKED QUESTIONS
What is compound interest?
Compound interest earns returns on both your initial principal and the interest previously accumulated. This creates exponential growth — the longer you invest, the faster your money grows.
How much does contribution frequency matter?
Daily compounding earns slightly more than annual compounding, but the difference is smaller than most people think. Monthly contributions have a much larger impact than compounding frequency.
What is the Rule of 72?
Divide 72 by the annual interest rate to estimate how many years it takes to double your money. At 7% annual return, your money doubles roughly every 72/7 = 10.3 years.
What does inflation-adjusted mean?
The real value shows your final balance in today's purchasing power, adjusted for inflation. A million dollars in 20 years at 2.5% inflation is worth about $610,000 in today's dollars.