Compound Growth Calculator

With the compound growth formula, you can estimate how much your investment or savings will grow over a certain time and financial specification.

The formula for annual compound interest is as follows:

where:

• PVPV – Initial balance or present value;
• rr – Annual interest rate;
• mm – Number of times the interest is compounded per year (compounding frequency);
• tt – Number of years;
• FVFV – Future value of the initial balance; in our calculator, it is the final balance (learn more about it by our future value calculator); and
• CGCG – Compound growth.

To make the calculator work, you need to fill in the appropriate fields:

• Main properties

1. Initial balance – the present value of your investment or savings;
2. Interest rate – the interest rate expressed on a yearly basis;
3. Term – the time frame the compounding growth is calculated for; and
4. Compound frequency – in this field, you should select how often the compounding applies to your balance. Usually, the interest added to the principal balance daily, weekly, monthly, quarterly, semi-annually, or yearly. But you may set it as continuous compounding as well, which is the theoretical limit for the compounding frequency. In this case, the number of periods when compounding occurs is infinite.

• Additional deposits

1. How much? – the amount you add to your balance;
2. How often? – the frequency of the additional deposit;
3. When? – the timing of the transaction of the additional deposit; and
4. Growth rate of deposit – this option allows you to set the growth rate of the additional deposit, if any.

That's it! In a sec, our compound growth calculator will give you your results.

The two main results are:

• Final balance – the future value of your initial balance; and
• Total compound growth.

Plus...

• Bar chart – you can follow the balances of compound growth, where, if you choose higher than yearly compounding, you can see the additional growth due to the compound frequency;

If you provide an additional deposit, we will give you your results for the compounded initial balance and compounded additional balance.

We will also show you their contribution to the total growth amount, namely, compound growth on the initial balance and compound growth on the additional deposit.

You should consider the compound growth calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are, despite our best efforts, not exhaustive.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive useful feedback and advice.