Compound Interest Calculator
See how your investments grow with compound interest
Investment Details
$
Starting amount
$
Amount added each month
%
Average yearly return
years
How long to invest
How often interest compounds
Future Value
Total Value After 10 Years
$0
NaN% total return
Investment Breakdown
Total Contributions$0
Interest Earned+$0
Monthly Breakdown
Monthly contribution:$500
Total monthly payments:120
Avg monthly growth:$0
The Power of Compound Interest
Compound interest is when you earn interest on both your initial investment and previously earned interest. This creates exponential growth over time.
Key Factors:
- • Time: The longer you invest, the more powerful compounding becomes
- • Rate: Higher returns dramatically increase final value
- • Frequency: More frequent compounding yields better results
- • Contributions: Regular additions accelerate growth
Trading Account Growth
Apply compound interest to your trading:
- • Reinvest profits instead of withdrawing
- • Gradually increase position sizes as account grows
- • Maintain consistent risk percentage (1-2%)
- • Target steady monthly returns (2-5%)
- • Avoid large drawdowns that hurt compounding
Historical Returns
Average annual returns by asset class:
- • S&P 500 (1957-2023): ~10.5%
- • Bonds: 4-6%
- • Real Estate: 8-12%
- • Gold: 7-8%
- • Skilled Day Trading: 15-30%+
The Rule of 72
Divide 72 by your annual return rate to estimate how long it takes to double your money:
3% return
24 years to double
6% return
12 years to double
9% return
8 years to double
12% return
6 years to double
Apply to Your Trading
Example: Starting with $10,000 and achieving 3% monthly returns:
- • Year 1: $14,258 (42.6% return)
- • Year 2: $20,328 (103.3% total)
- • Year 3: $28,983 (189.8% total)
- • Year 5: $58,916 (489.2% total)
Consistency is key - small monthly gains compound into significant wealth!