Investment Calculator
Calculate compound interest, investment returns, and retirement planning projections
Investment Details
Enter your investment information to calculate future returns
Interest earned on both principal and accumulated interest
Investment Projection
Your investment growth projection
About Investment Calculations
Investment Types
- • Compound Interest: Interest earned on both principal and accumulated interest
- • Simple Interest: Interest earned only on the principal amount
Key Factors
- • Initial Investment: Starting amount invested
- • Monthly Contributions: Regular additional investments
- • Annual Return Rate: Expected yearly growth percentage
- • Time Horizon: Length of investment period
Retirement Planning
- • Calculate if your current savings plan will meet your retirement goals
- • Identify any shortfall that needs to be addressed
- • Consider increasing contributions or adjusting your retirement timeline
Frequently Asked Questions
What is the difference between simple and compound interest?▾
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus previously earned interest, causing your balance to grow exponentially over time.
How often should interest be compounded?▾
More frequent compounding (daily or monthly) produces slightly higher returns than annual compounding, though the difference shrinks over time. Most savings accounts compound daily or monthly.
What is the Rule of 72?▾
The Rule of 72 is a quick way to estimate how long an investment takes to double: divide 72 by your annual interest rate. At 8%, an investment doubles in about 9 years.
How does compound interest work on savings accounts?▾
Banks calculate interest on your balance at regular intervals and add it back to your account. The next interest calculation then includes the previously earned interest, so your money grows faster over time.