Compound Growth Calculator
This calculator helps you understand how compounding can grow money over time. It uses simplified assumptions for learning purposes (not predictions).
Assumes a constant annual rate and monthly compounding. Ignores taxes, fees, inflation, and market volatility.
Compound Growth FAQs
What is compound growth?
Compound growth means you can earn growth not only on your original money, but also on the growth you’ve already accumulated. Over long periods, compounding can make small differences in time, rate, or contributions add up to much larger differences in ending value.
Does this calculator assume monthly compounding?
Yes. This estimate converts your annual rate to a monthly rate (annual ÷ 12) and compounds monthly while adding your monthly contributions. Real-world returns vary and don’t arrive smoothly each month.
What growth rate should I use?
Use an illustrative rate to compare scenarios rather than predict outcomes. Many people test a conservative rate and a higher rate to see a range of possible outcomes. This tool is for learning, not forecasting.
Does this include taxes, fees, or inflation?
No. Results ignore taxes, investment fees, and inflation. Those factors can materially change real-world outcomes, so treat the number as a simplified estimate.
What if I contribute irregularly?
This calculator assumes steady monthly contributions. If your contributions change, try running it multiple times with different monthly amounts to approximate phases (e.g., $200/month now, $400/month later).
Educational use only. Growth rates are examples, not predictions.