Millennia Trades

Compound Interest Calculator

See how your investments can grow over time with the power of compound interest. This calculator helps you visualize the potential growth of your investments based on your initial deposit, regular contributions, time horizon, and expected rate of return.

Your starting investment amount.

How much you'll add each month.

10

Length of your investment.

7%

Expected annual return rate.

How often interest is compounded.

Tips for Maximizing Compound Interest

  • Start investing as early as possible to maximize the compounding effect
  • Contribute regularly to accelerate your investment growth
  • Reinvest dividends and interest payments rather than taking them as income
  • Be patient - the most dramatic effects of compounding are seen in later years
  • Consider tax-advantaged accounts to shelter your investment growth from taxes

Understanding Compound Interest

Compound interest is the interest calculated on the initial principal and on the accumulated interest over previous periods. It's often described as "interest on interest," and it's one of the most powerful concepts in investing.

The longer you let your investments grow, the more dramatic the compounding effect becomes. This is why starting to invest early is so important for building wealth over time.

Remember that this calculator provides estimates based on a constant rate of return. Actual investment returns will vary over time, and past performance is not indicative of future results.