Compound Interest Calculator
Annual Compounding
Calculate investment growth with additional contributions and compare different scenarios
About Compound Interest
Compound interest is the addition of interest to the principal sum of a loan or deposit, where the interest earned also earns interest.
Annual compounding means your interest is calculated and added once per year.
The more frequent the compounding, the greater the compound interest will be.
Compounding Frequencies
Investment Tips
• Start investing early to maximize compound growth
• Make regular contributions to accelerate growth
• Choose accounts with higher compounding frequency
• Reinvest your returns for exponential growth
• Consider inflation when planning long-term
Withdrawal Strategies
• 4% Rule: Withdraw 4% annually for retirement
• Safe Rate: Keep withdrawals under 3-5% of balance
• After Growth: Withdrawals occur after interest compounds
• Flexibility: Adjust withdrawals based on performance
• Emergency Buffer: Keep 6-12 months of expenses separate
• Early Warning: Monitor account depletion carefully