Compound Growth Calculator
Calculate compound growth and investment returns with compound interest, additional deposits, and various compounding frequencies
Compound Growth Calculator
Main Properties
Present value of your investment or savings
Interest rate expressed on a yearly basis
Time frame for compound growth calculation
Additional months (0-11)
How often interest is compounded - Monthly
Additional Deposits
Amount you add to your balance
Frequency of additional deposits - Monthly
Timing of the additional deposit transaction
Growth rate of the additional deposit amount (inflation adjustment)
Compound Growth Results
| Initial Deposit | Additional Deposits | Total | |
|---|---|---|---|
| Principal Balance | $1,000 | $12,000 | $13,000 |
| Compound Growth | $3,926.803 | $17,647.361 | $21,574.164 |
| Final Balance | $4,926.803 | $29,647.361 | $34,574.164 |
Formula: FV = PV × (1 + r/m)m×t
Initial Balance: $1,000
Interest Rate: 8% annually
Compounding: Monthly
Term: 20 years 0 months
Deposits: $50 monthly
Investment Analysis
Example Compound Growth Calculation
20-Year Investment with Monthly Deposits
Initial Balance: $1,000
Annual Interest Rate: 8%
Term: 20 years
Compounding: Monthly (12 times per year)
Additional Deposits: $50 per month
Compound Growth Calculation
Initial Balance Growth: $1,000 × (1 + 0.08/12)240 = $4,927
Additional Deposits Total: $50 × 240 = $12,000
Deposits Future Value: ~$29,647 (with compound interest)
Total Final Balance: $4,927 + $29,647 = $34,574
Total Principal: $1,000 + $12,000 = $13,000
Total Compound Growth: $34,574 - $13,000 = $21,574
Compounding Frequency Impact
Annually
Growth: $3,660.957
Quarterly
Growth: $3,875.439
Monthly
Growth: $3,926.803
Daily
Growth: $3,952.164
Compound Growth Benefits
Exponential growth through compound interest
Time amplifies investment returns significantly
Regular deposits accelerate wealth building
Higher compounding frequency increases returns
Passive wealth accumulation over time
Inflation protection through growth
Understanding Compound Growth
What is Compound Growth?
Compound growth occurs when your investment earnings are reinvested to generate their own earnings. This creates a snowball effect where your money grows exponentially over time, not just linearly.
The Power of Compounding
- •Earlier you start, more powerful the effect
- •Consistent contributions amplify growth
- •Higher rates and frequent compounding help
- •Time is the most critical factor
Compound Growth Formula
FV = PV × (1 + r/m)m×t
CG = FV - PV
- FV: Future Value (final balance)
- PV: Present Value (initial balance)
- r: Annual interest rate (as decimal)
- m: Compounding frequency per year
- t: Time in years
- CG: Compound Growth
Einstein reportedly said: "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."
Factors Affecting Compound Growth
Initial Amount
Larger starting amounts provide more base for compounding
Interest Rate
Higher rates accelerate compound growth significantly
Time Period
Longer periods unleash the true power of compounding
Frequency
More frequent compounding increases effective returns
Investment Strategies
Dollar-Cost Averaging
- • Regular fixed-amount investments
- • Reduces market timing risk
- • Benefits from market volatility
- • Builds disciplined investing habit
Lump Sum Investment
- • Maximizes time in market
- • Higher potential returns
- • Requires market timing decision
- • Greater initial capital needed