Finance
Calculator for compound interest
Project how initial balance and recurring monthly contributions fit grow over time.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Value for future
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Wetin make up the future value
| Amount | |
|---|---|
| Principal wey you start with | — |
| Total money wey you add | — |
| Interest wey you earn | — |
| Value for future | — |
Wetin dey drive the total
Bars scale to future value. Interest na remainder after principal and contributions: e dey grow fastest late in period, when balance be largest.
Balance for year end
| Year | Balance |
|---|
Contributions dey added at the end of each month and interest compounds monthly.
Formula
Rate every month = yearly rate ÷ 12. Future value = principal × (1 + rate every month)months + contribution × [(1 + monthly rate)months − 1] ÷ monthly rate. With 0% rate, future value na simply principal + contributions.
Example wey show the calculation
Principal $10,000, $500 a month, 6% a year for 10 years (120 months): principal grow to $18,193.97, $60,000 of contributions grow to $81,939.67, for future value of $100,133.64. Interest earned na $30,133.64 on $70,000 put in.
Where e fit work and limits
Rate assumed constant for whole period, contributions be end-of-month and never missed, and taxes, fees, and inflation no included. Real returns dey vary year to year, so treat result as projection under one fixed assumption, no be promise.
Questions wey people dey ask often
Dem dey add contributions for start abi end of month?
End of month, matching source calculator convention. Start-of-month contributions for earn one extra month of interest each and give slightly higher total.
Wetin go happen if rate na 0%?
Future value na just principal plus all contributions, with zero interest. Calculator handle that case directly instead of dividing by zero.
Higher rate abi longer time — which one matter pass?
Both compound, but time get distinctive effect: interest earned late in period apply to much larger balance, na why starting earlier often beat contributing more later.
Na before tax abi after tax?
Before tax, and before fees and inflation. Taxable account dey keep less than headline figure.
I fit model contributions wey no regular?
Dis form use fixed monthly contribution. For deposits wey no regular, grow each cash flow over di time wey remain until di same end date, then add those future values. No add results wey get different end dates.
Other tools wey relate to dis
- Calculator for savings target — start from target to work out amount wey you need every month
- Calculator for retirement savings — growth across the years wey person dey work
- Calculator for yearly compounded return — turn total growth into yearly rate
Results na estimates; dem no replace advice from qualified professional.