Compound Interest Calculator

Use my free compound interest calculator to see how much the future value of your initial investment can grow over time! 

Albert Einstein is credited with stating, “Compound interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t – pays it.“ 

How To Use This Compound Interest Calculator [and what you will learn]

When you sign up for the product testing program, you will be expected to provide personal information such as your age, gender, and location. You will also be asked what sports and activities you enjoy so that Adidas can better target product testing opportunities for you. 

– The compound interest formula is described at the bottom of this page – Enter your current principal amount (how much you have or are going to invest) – Estimate the annual addition you will make to this investment – Enter how long you will let this investment grow without withdrawing money from it – Input your expected yearly investment returns (annual interest rate) – Calculate compound interest to see how close you are to your savings goal

What Is A “Normal” Compound Interest Rate?

Rates vary depending on the investment vehicle you choose. For instance, savings account rates are much lower than the rates you would make by investing in a mutual fund or index fund in the stock market. 

– Money Market – 0.08% – 0.11% (Annual Percentage Yield) – Stock Market – Historical annual return of 7.9% – Savings Account – 0.09% (Annual Rate Percentage) – Certificate Of Deposit      – 6-Month CD – 0.65%     – 5-Year CD – 3.10% – Alternative Investments – Vary by investment type      – Compare investment opportunities here

Current average interest rates by vehicle: 

To make the most of a compounding investment, you need to focus on consistent investing as well as a long term view of the future. Making the most from your money is directly tied to the continuous compounding by reinvesting dividends and leaving your money alone.  

How To Use Compounding Interest To Your Advantage

Compound Interest Formula:

How Compound Interest Is Calculated (for math nerds)

FV = P(1 + r/n)Yn 

P = starting principal FV = future value n = how many times compounded (yearly) Y = number of years invested r = annual interest rate

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