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Free financial calculator

Compound Growth Calculator

Final value from initial amount, monthly savings and return.

Also available in German: Zinseszins-Rechner →

Inputs

%

Discount / required rate

Also called: Required return, hurdle rate

Where to find it: Your own required return — or via CAPM (discount-rate calculator).

How to derive: Risk-free rate + beta × market premium. Equities typically 7–10%.

Result, live

Final value
Total contributions
Growth

Monthly compounding, end-of-month contributions. Not inflation-adjusted.

The compound growth calculator shows what your initial amount plus a monthly contribution turns into over the years. It reinvests every month, so your returns start earning returns of their own. You instantly see how time and rate of return work together.

How the formula works

The final value has two parts: your initial amount compounded, plus every contribution compounded from the month you pay it in. It runs monthly, using a monthly rate of r = return ÷ 12.

Final = Start × (1+r)^n + Contribution × ((1+r)^n − 1) ÷ r

Example: $10,000 up front plus $200 a month at 7% p.a. over 20 years grows to about $144,573. You only paid in $58,000 – the other ~$86,573 is pure compounding.

How to read the result

  • Final value – what you end up with on paper, including all growth.
  • Total contributions – the money you actually paid in (start + every deposit).
  • Growth – the difference, i.e. the pure compounding effect.
  • The longer the horizon, the more sharply the curve bends upward near the end.

What to watch out for

  • The return is an assumption, not a promise – real markets swing from year to year.
  • Inflation is not included: $144,573 in 20 years buys less than it does today.
  • Tax on interest and gains plus account fees will lower the real outcome.

Frequently asked questions

What is the difference between simple and compound interest?
With simple interest you only ever earn on the original amount. With compound interest the returns are reinvested and earn returns too, so the balance grows faster and faster over time.
What return should I assume?
A broadly diversified stock portfolio has returned roughly 7% a year over the long run – before tax and inflation. Plan conservatively and test a few values rather than counting on the best case.
Can I calculate without a monthly contribution?
Yes. Set the contribution to 0 to watch a one-off lump sum grow on its own. Or set the initial amount to 0 to model a pure savings plan.