Compound Interest Calculator with Contribution

Albert Einstein is famously quoted for saying that "Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn't, pays it". Thankfully none of us need to be Albert Einstein to understand the rather simple and yet powerful concept of Compound Interest. There are a lot of compound interest calculators out there. I particularly like the Compound Interest Calculator from Investor.gov. The main reason I like this calculator is that it allows you to include Monthly Contributions, which if you are a serious investor, should be part of your strategy.  Let's take a look at how it works. First, you need to enter some general information such as starting amount, monthly contribution, length of time and estimated interest rate. For this example, I will use the numbers below:

Once you have entered the information above, all you need to do is click "CALCULATE" and the graph below will appear showing you how your account balance is expected to grow over time. Additionally, you can also get the data in table form. Another reason I like this particular calculator is because it is so simple and yet it provides you with very powerful option beyond monthly contributions such as interest rate variance and compounding frequency.

So, if you are looking for a compound interest calculator, give this one a try!