| Year | Total Deposits | Interest Earned | Total Balance |
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Project the exponential growth of your savings and monthly contributions over any time horizon.
| Year | Total Deposits | Interest Earned | Total Balance |
|---|
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. Over time, compounding yields exponential curve growth rather than linear growth. Standard accounts only earn interest on simple principal deposits. High-yield savings, stock index portfolios, and pension schemes compound continuously, multiplying balances exponentially.
This calculator tracks growth using an iterative monthly compound interest schedule:
A = P(1 + r/n)^(nt) + PMT * [((1 + r/n)^(nt) - 1) / (r/n)] * (1 + r/n)
Where A is the final balance, P is the initial principal, r is the annual rate, n is the compound frequency (12 times per year for monthly calculations), and PMT is the monthly contribution.