See how an initial deposit and regular contributions grow over time when interest compounds.
This calculator compounds interest monthly and adds your recurring contribution each period, which is how most savings and investment accounts actually work.
Compound interest earns returns on your returns, not just your original deposit — which is why the growth curve accelerates the longer money stays invested.
Regular contributions amplify this effect: each new deposit starts compounding immediately, so consistency often matters more than the size of your initial deposit.
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus any interest already earned, so it grows faster over time.
More frequent compounding (daily or monthly) produces slightly higher returns than annual compounding at the same nominal rate, though the difference is usually small.