This Compounding Calculator shows you how the interest you earn each year is added to your principal so that the balance doesn’t merely grow, it grows at an increasing rate. ... What is the value of compound interest? The calculator results show how your savings grow each year. An official website of the United States government. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. The formula for compound interest is P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods. To configure the function, we need to provide a rate, the number of periods, the periodic payment, the present value. Calculate compound interest on an investment or savings. Don't be deceived by more complex 401k calculators that include more variables.
Annual Salary This is your annual salary from your employer before taxes and other benefit deductions.
Compounding may go a long way toward helping you with your retirement goals.
Jason Lee Compound interest is pretty simple - it's when the money you have saved earns interest from a bank or credit union or retirement account like a 401(k) plan or IRA. Javascript is required for this calculator. Choosing between the two types of 401(k) plans depends heavily on when you believe you will be in a higher tax bracket. So before committing any money to an investment opportunity, use the “Check Out Your Investment Professional” search tool below the calculator to find out if you’re dealing with a registered investment professional. ” title=”" />