finance/calculator
Compound Interest Calculator - Free & Instant | Smocky
The currency used to write every amount.
Whether each Contribution earns during its current period.
The amount present at the start of the Term.
The amount added each Contribution period.
How often a Contribution is added.
How often earned interest is added.
The nominal yearly rate before compounding.
Whole years from 1 to 50.
The yearly percentage increase in Contribution.
Used to restate Future value in starting purchasing power.
Assumes the Annual rate stays constant, interest is reinvested, months are equal twelfths of a year, and there are no fees, tax, or withdrawals. This calculation uses only the numbers entered and is not a recommendation.
Frequently asked questions
Why do monthly Contributions grow when interest compounds annually?
The calculator converts the Annual rate to its Effective annual rate, then applies the equivalent rate for each Contribution period. This preserves the same yearly growth while accounting for when each Contribution is added.
What is the difference between Annual rate and Effective annual rate?
Annual rate is the quoted nominal rate. Effective annual rate includes the effect of Compounding frequency, so it can be higher when interest compounds more than once a year.
What does Real future value mean?
Real future value restates the projected Future value in purchasing power at the start of the Term. It can fall below the amount paid in when Inflation rate outweighs the investment growth.
Why does Contribution timing change the result?
A Contribution added at the start of its Contribution period earns interest during that period. One added at the end begins earning in the following period.