Investment Calculator

How Compound Growth Works

Compound interest is one of the most powerful forces in personal finance. It means your money earns returns on both your original investment and on the growth it has already generated. Over time, this “interest on interest” effect causes wealth to accelerate — even with modest contributions.

Why Consistency Beats Timing

Many new investors focus on trying to find the “perfect time” to invest. But consistency — not timing — is the biggest driver of long-term returns. Regular monthly investments benefit from market averages, dollar-cost averaging, and the unstoppable math of compounding.

Example of Compound Growth

Let’s say you invest $200 per month at a 7% annual return. After 20 years, you’ll have contributed $48,000 — but your account will be worth over $100,000. That’s the power of compounding doing the heavy lifting while you stay consistent.

How to Interpret Your Results

• Initial Investment — the amount you start with.
• Total Contributions — what you’ve added over time.
• Total Invested — initial investment + total contributions.
• Estimated Future Value — your projected balance after compounding.
• Total Growth — how much your money earned beyond your total invested.

Actual results vary with market conditions, behavior, and investment choices. Use this as a planning aid to visualize how steady effort and time combine to build wealth.

Next Steps for Investors

Once you understand compound growth, explore broader planning — asset allocation, risk tolerance, and retirement targets. Try our Retirement Calculator next.

Using the Calculator

• Enter your initial investment.
• Add your monthly contribution.
• Specify the annual interest rate and years.
• Click “Calculate” (or press Enter) to see your projection.

This tool assumes monthly compounding and contributions made at the end of each month. It runs entirely in your browser and doesn’t store data.