Question 1

What is compound interest?

Accepted Answer

Compound interest is interest earned on both your original principal and the interest that has already accumulated. Over time this snowball effect makes your balance grow faster than simple interest.

Question 2

How is the future value calculated?

Accepted Answer

Each month, interest is added to the balance using the monthly rate (annual rate divided by 12), then your monthly contribution is added. Repeating this for every month of the term gives the future value.

Question 3

What is the difference between total contributions and total interest?

Accepted Answer

Total contributions is the money you put in: your initial principal plus every monthly deposit. Total interest is the extra growth earned on top of that, equal to the future value minus your contributions.

Question 4

Can I use it for any currency?

Accepted Answer

Yes. The math is currency-agnostic. Choose your currency or simply enter your numbers; the result applies to any currency.

Question 5

Is my financial data private?

Accepted Answer

Yes. All calculations happen in your browser; nothing you enter is uploaded.

Compound Interest& Savings Calculator

Compound Interest
& Savings Calculator