Compound Interest & Investment Growth Simulator
Model your path to financial freedom. Simulate compound growth trajectories, regular monthly savings, and flexible interest compounding frequencies with exponential custom area charts.
Initial Deposit & Schedule
🔄 Compounding Frequency
Select the compound growth calculation cycle
$120,156
Accrued balance after 15 years compounding at 8% annual yield.
Initial seed + ongoing deposits
Earned entirely from compound returns
Exponential Growth Path Chart
📋 Year-by-Year Growth Table
Chronological wealth projection timeline
| Year | Deposits ($) | Interest Accrued ($) | Net Worth ($) |
|---|---|---|---|
| Yr 0 | $10,000 | +$0 | $10,000 |
| Yr 1 | $13,000 | +$963 | $13,963 |
| Yr 2 | $16,000 | +$2,255 | $18,255 |
| Yr 3 | $19,000 | +$3,904 | $22,904 |
| Yr 4 | $22,000 | +$5,938 | $27,938 |
| Yr 5 | $25,000 | +$8,390 | $33,390 |
| Yr 6 | $28,000 | +$11,295 | $39,295 |
| Yr 7 | $31,000 | +$14,689 | $45,689 |
| Yr 8 | $34,000 | +$18,615 | $52,615 |
| Yr 9 | $37,000 | +$23,115 | $60,115 |
| Yr 10 | $40,000 | +$28,238 | $68,238 |
| Yr 11 | $43,000 | +$34,035 | $77,035 |
| Yr 12 | $46,000 | +$40,562 | $86,562 |
| Yr 13 | $49,000 | +$47,880 | $96,880 |
| Yr 14 | $52,000 | +$56,054 | $108,054 |
| Yr 15 | $55,000 | +$65,156 | $120,156 |
Understanding the Power of Compound Interest
What is Compound Interest?
Compound interest is often described as "interest on interest." When you invest money, you earn interest on your initial principal. In the next compounding cycle, you earn interest on both your original principal **and** the accumulated interest from the previous cycle. Over time, this compounding loop creates an exponential curve that is the bedrock of long-term wealth building.
How do regular monthly deposits accelerate growth?
While a single initial deposit will compound over time, making recurring monthly contributions (an annuity) radically accelerates growth. Regular deposits continuously increase the base principal balance upon which compounding interest is calculated. This creates a powerful snowball effect that multiplies your long-term returns.
Why do compounding intervals matter?
The compounding frequency determines how many times interest is calculated and added back to your balance each year. For instance, **monthly compounding** divides the annual rate by 12 and applies it 12 times a year, whereas **annual compounding** applies the full rate once at the year's end. More frequent compounding means interest starts earning interest sooner, yielding higher final returns.