Compound Interest Calculator

See how much growth you can expect in your savings accounts by plugging a few numbers into the compound interest calculator.

Enter Your Information

How long do you plan to save and add to your account?

\$

Balance in your savings account, certificate of deposit (CD), etc.

\$

This is the amount you’ll add to savings each month.

%

Check the current federal funds rate to give you an idea.

Spoiler alert—sometimes it’s well below 1%. 1

Your Results

Estimated Savings Value

In 0 years, your savings could be worth:

\$0

Thinking it’s time to set some goals and polish up your money strategy?

\$ 0

0% of Total

\$ 0

0% of Total

\$ 0

0% of Total

What if I...

• Saved an extra \$100 per month.

Adds \$100 a month in contributions, but creates

\$0

in additional growth

• Gave up daily coffee purchases.

Adds \$128 a month in contributions, but creates

\$0

in additional growth

• Gave up weekly restaurant visits.

Adds \$200 a month in contributions, but creates

\$0

in additional growth

What is a compound interest calculator for?

A compound interest calculator is a simple way to estimate how your money will grow if you continue saving money in savings accounts. Your money earns interest every day (if it compounds daily) and then the next day’s interest is calculated based on THAT total instead of on the principal.

Nutshell: You earn interest on top of interest.

With the relatively low rate of return on savings accounts, it’ll take a hot minute for the growth to add up to anything earth-shattering, but, hey—a savings account beats the heck out of a coffee can full o’ crumpled cash buried in the backyard. Still, though—if you manage your money right, there’s going to come a day when it’s time to raise the bar!

When is it time to start investing?

As a general guideline, we suggest you start investing when you’re debt-free (other than a mortgage) and have 3–6 months of expenses saved in an emergency fund. Investing 15% of your paycheck is the sweet spot we recommend.

The reason we say that? If you look back at the historic average annual return of the stock market over a period of about 30 years, it’s around 10–12%.2 Did you notice in the calculator when we said the average annual return for savings accounts is pretty regularly below 1%? That’s a big difference.

If it’s time to move your money around, we’re not going to lie—there’s a lot to learn. As you start investing, keep this in mind: Never invest in anything you don’t understand. And that’s where it can help to talk with an investing professional about this stuff.

Find an investing pro who can guide you.

An investing pro can teach you about different investment options and help you make a plan with your goals in mind. And we make it easy to connect with pros in your area who teach and guide but don’t intimidate. Through the SmartVestor program, you can connect with up to five of them in your area for free and then decide who you want to work with.

It’s your money. Get the questions you need so you can take charge of it.

Reach out to a SmartVestor Pro today!

This tool provides general guidelines about investing topics. Your situation may be unique. If you have questions, connect with a SmartVestor Pro. Ramsey Solutions is a paid, non-client promoter of participating Pros.