Compound interest calculator

Compound interest calculator.

Built with Quant Edge Functions.

Compound Interest Calculator

Calculation Result

  • Initial Lump Sum: $1,000.00
  • Monthly Contribution: $100.00
  • Annual Interest Rate: 5%
  • Time: 5 years
  • Compound Frequency: Annually
  • Total Contributions: $7,000.00
  • Final Amount: $7,907.04
  • Interest Earned: $907.04

Growth Chart

Use the form above to calculate compound interest with initial lump sum and monthly contributions.

Example: $1000 initial, $100 monthly, 5% interest rate, 5 years, compounded monthly.

What is Compound Interest?

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

Compound interest is calculated on the initial principal and also on the accumulated interest of previous periods. It can be thought of as "interest on interest," and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.

What does this Calculator do?

  • Calculate Growth: It computes how an investment will grow over time with compound interest.
  • Consider Monthly Contributions: The calculator factors in regular monthly contributions to the investment.
  • Flexible Compounding: It allows for different compounding frequencies (annually, semi-annually, quarterly, monthly, daily).
  • Visual Representation: Provides a chart to visualize the growth of the investment over time.
  • Detailed Breakdown: Shows a clear breakdown of initial investment, contributions, and interest earned.
  • Customizable Inputs: Users can adjust initial investment, monthly contribution, interest rate, time period, and compounding frequency.
  • Instant Calculations: Provides immediate results as users input or change their parameters.

Why is understanding Compound Interest important?

  • Investment Growth: It demonstrates how investments can grow exponentially over time.
  • Savings Strategy: Helps in planning long-term savings and understanding the impact of early and consistent saving.
  • Debt Management: Illustrates how debt, especially with high interest rates, can grow if not managed properly.
  • Financial Planning: Essential for retirement planning and achieving long-term financial goals.
  • Power of Time: Shows the significant impact that time has on investment growth.
  • Compare Investments: Allows for comparison between different investment strategies and options.
  • Educational Tool: Serves as a practical way to understand and visualize financial concepts.

What is Quant?

QuantCDN is an all-in-one CDN and Jamstack solution.

Our content delivery network spans over 90 points of presence globally to provide minimal latency to your customers around the world. Our rich feature-set includes CDN, WAF, image optimization, tiered caching, static snapshots, failover, serverless functions, and much more.

This compression testing tool is provided free of charge and built using our Edge Functions, which allow for dynamic Javascript to execute directly at edge.

Icons representing Quant CDN Services
\u003c/div\u003e\r\n","format":"full_html","processed":"\u003cstyle type=\"text/css\"\u003epre {\n background: #222;\n color: #f2f2f2;\n padding: 1em;\n}\n\u003c/style\u003e\n\u003cdiv class=\"h6 mt-5 mb-5\"\u003e

Compound Interest Calculator

Calculation Result

  • Initial Lump Sum: $1,000.00
  • Monthly Contribution: $100.00
  • Annual Interest Rate: 5%
  • Time: 5 years
  • Compound Frequency: Annually
  • Total Contributions: $7,000.00
  • Final Amount: $7,907.04
  • Interest Earned: $907.04

Growth Chart

Use the form above to calculate compound interest with initial lump sum and monthly contributions.

Example: $1000 initial, $100 monthly, 5% interest rate, 5 years, compounded monthly.

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It can be thought of as \"interest on interest,\" and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.\u003c/p\u003e\r\n\r\n\u003ch2 class=\"text-left h1\"\u003eWhat does this\u0026nbsp;\u003cstrong\u003e\u003cspan class=\"gradient-text\"\u003eCalculator\u003c/span\u003e\u003c/strong\u003e do?\u003c/h2\u003e\r\n\r\n\u003cul\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eCalculate Growth:\u003c/strong\u003e It computes how an investment will grow over time with compound interest.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eConsider Monthly Contributions:\u003c/strong\u003e The calculator factors in regular monthly contributions to the investment.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eFlexible Compounding:\u003c/strong\u003e It allows for different compounding frequencies (annually, semi-annually, quarterly, monthly, daily).\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eVisual Representation:\u003c/strong\u003e Provides a chart to visualize the growth of the investment over time.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eDetailed Breakdown:\u003c/strong\u003e Shows a clear breakdown of initial investment, contributions, and interest earned.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eCustomizable Inputs:\u003c/strong\u003e Users can adjust initial investment, monthly contribution, interest rate, time period, and compounding frequency.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eInstant Calculations:\u003c/strong\u003e Provides immediate results as users input or change their parameters.\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003ch2 class=\"text-left h1\"\u003eWhy is understanding Compound Interest\u0026nbsp;\u003cstrong\u003e\u003cspan class=\"gradient-text\"\u003eimportant\u003c/span\u003e\u003c/strong\u003e?\u003c/h2\u003e\r\n\r\n\u003cul\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eInvestment Growth:\u003c/strong\u003e It demonstrates how investments can grow exponentially over time.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eSavings Strategy:\u003c/strong\u003e Helps in planning long-term savings and understanding the impact of early and consistent saving.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eDebt Management:\u003c/strong\u003e Illustrates how debt, especially with high interest rates, can grow if not managed properly.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eFinancial Planning:\u003c/strong\u003e Essential for retirement planning and achieving long-term financial goals.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003ePower of Time:\u003c/strong\u003e Shows the significant impact that time has on investment growth.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eCompare Investments:\u003c/strong\u003e Allows for comparison between different investment strategies and options.\u003c/li\u003e\r\n\t\u003cli\u003e\u003cstrong\u003eEducational Tool:\u003c/strong\u003e Serves as a practical way to understand and visualize financial concepts.\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\u003c/div\u003e\r\n\u003c/div\u003e\r\n","format":"full_html","processed":"\u003cdiv class=\"row mt-5 mb-5\"\u003e\n\u003cdiv class=\"col-lg-10\"\u003e\n\u003ch2 class=\"text-left h1\"\u003eWhat is\u0026nbsp;\u003cstrong\u003e\u003cspan class=\"gradient-text\"\u003eCompound Interest\u003c/span\u003e\u003c/strong\u003e?\u003c/h2\u003e\n\n\u003cp class=\"pt-4 lead\"\u003eCompound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.\u003c/p\u003e\n\n\u003cp\u003eCompound interest is calculated on the initial principal and also on the accumulated interest of previous periods. It can be thought of as \"interest on interest,\" and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.\u003c/p\u003e\n\n\u003ch2 class=\"text-left h1\"\u003eWhat does this\u0026nbsp;\u003cstrong\u003e\u003cspan class=\"gradient-text\"\u003eCalculator\u003c/span\u003e\u003c/strong\u003e do?\u003c/h2\u003e\n\n\u003cul\u003e\n\t\u003cli\u003e\u003cstrong\u003eCalculate Growth:\u003c/strong\u003e It computes how an investment will grow over time with compound interest.\u003c/li\u003e\n\t\u003cli\u003e\u003cstrong\u003eConsider Monthly Contributions:\u003c/strong\u003e The calculator factors in regular monthly contributions to the investment.\u003c/li\u003e\n\t\u003cli\u003e\u003cstrong\u003eFlexible Compounding:\u003c/strong\u003e It allows for different compounding frequencies (annually, semi-annually, quarterly, monthly, daily).\u003c/li\u003e\n\t\u003cli\u003e\u003cstrong\u003eVisual Representation:\u003c/strong\u003e Provides a chart to visualize the growth of the investment over time.\u003c/li\u003e\n\t\u003cli\u003e\u003cstrong\u003eDetailed Breakdown:\u003c/strong\u003e Shows a clear breakdown of initial investment, contributions, and interest earned.\u003c/li\u003e\n\t\u003cli\u003e\u003cstrong\u003eCustomizable Inputs:\u003c/strong\u003e Users can adjust initial investment, monthly contribution, interest rate, time period, and compounding frequency.\u003c/li\u003e\n\t\u003cli\u003e\u003cstrong\u003eInstant Calculations:\u003c/strong\u003e Provides immediate results as users input or change their parameters.\u003c/li\u003e\n\u003c/ul\u003e\n\n\u003ch2 class=\"text-left h1\"\u003eWhy is understanding Compound Interest\u0026nbsp;\u003cstrong\u003e\u003cspan class=\"gradient-text\"\u003eimportant\u003c/span\u003e\u003c/strong\u003e?\u003c/h2\u003e\n\n\u003cul\u003e\n\t\u003cli\u003e\u003cstrong\u003eInvestment Growth:\u003c/strong\u003e It demonstrates how investments can grow exponentially over 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