Principal only
$10,000 at 5% compounded annually for 10 years grows to approximately $16,288.95.
Project compound investment growth with flexible compounding, recurring contributions, annual increases, charts, and a yearly schedule.
Compound interest earns growth on principal and on growth accumulated in earlier periods. Recurring deposits add new capital that compounds for the remainder of the projection.
The calculator converts the selected nominal rate and compounding frequency to an equivalent monthly factor, then simulates contributions month by month at full precision.
This closed form describes principal-only growth; recurring contributions use the monthly simulation.
A = P × (1 + r ÷ n)^(n × t)$10,000 at 5% compounded annually for 10 years grows to approximately $16,288.95.
Start with $10,000 on January 1, 2026, add $200 at each month’s end with no annual contribution increase, and assume 7% nominal annual interest compounded monthly for 10 years. The monthly simulation applies interest before each end-of-month deposit. On January 1, 2036, the projected balance is $54,713.58: $34,000.00 contributed in total and $20,713.58 in interest. The principal-only formula above does not include these deposits.
Beginning-of-period deposits receive growth sooner than otherwise identical end-of-period deposits.
An annual increase changes future recurring deposits at each 12-month anniversary.
A nominal annual rate can produce different outcomes depending on how often interest compounds.
Compound interest earns returns on both the original principal and interest accumulated in earlier periods.
Principal-only growth follows P × (1 + r/n)^(nt). With recurring deposits, CalcRocket simulates monthly events using the selected compounding frequency’s equivalent monthly factor.
At the same nominal annual rate, more frequent compounding usually produces a slightly higher effective return because interest is added sooner.
Simple interest is calculated only on principal. Compound interest also earns returns on previously accumulated interest.
Choose beginning when deposits occur at the start of each contribution period, or end when they occur after that period’s growth. Beginning deposits have more time to earn interest.
They increase invested capital over time, and each contribution can earn compound growth for its remaining investment duration.
It raises the recurring contribution by the entered percentage at each 12-month anniversary, which can model contributions that grow over time.
Real returns change over time and may be affected by market volatility, taxes, fees, inflation, contribution dates, and changing rates.
No. Taxes, investment fees, inflation, and transaction costs are not included.
No. The entered rate is a modeling assumption and the result is not a guarantee of future returns.