Compound Interest Calculator
Use our compound interest calculator to see how your savings can grow over time. Calculate returns with different contribution amounts, interest rates and compounding frequencies.
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How to use this calculator
With this calculator, you can see approximately how much interest you can earn in a savings account. Use your findings to help you choose a new savings account or plan for a savings goal. To use the calculator:
- Enter the amount you have currently in savings (the initial deposit)
- Select how long you plan to keep the money in the account
- Enter your expected rate of return (the annual percentage yield (APY))
- Add any contributions you plan to make (weekly, bi-weekly, monthly or annually)
- Choose how often interest compounds (daily, monthly, quarterly or annually)
The calculator will show you your final balance, total contributions made and interest earned. To get an idea of the highest APY you can earn right now, see Bankrate’s lists of the best high-yield savings accounts.
Compound interest formula
Formula for calculating the final value of an investment that’s compounded
Amount = P ( 1 + r/n ) nt
- P = initial investment;
- r = interest rate
- t = compounded periods per year
- n = number of years
Understanding your results
Seeing your results can hopefully help motivate you to maximize your savings, whether that's by finding a more competitive rate, starting a savings habit or setting realistic goals.
For example, let’s say you’re saving for a special vacation in two years. You have $1,000 already saved toward this vacation but you want at least $3,000 to spend. You think you can afford to add between $50 and $100 to your fund on a monthly basis but you have other savings goals to work toward, too. So you want to know: is $3,000 for a vacation realistic with what you can afford to add? And how much of your available funds will you need to put toward your vacation fund?
Let's say you put your $1,000 in an account that earns 3.85% and compounds interest monthly:
- If you contribute $50 a month, you'll earn $125.24 in interest over the two years (thanks to the power of compound interest, which means you earn interest on your interest) for a total of $2,325.24 in your vacation fund. That wouldn't be quite enough.
- With $100 a month contribution, you'd end up $170 in interest and a total of with $3,570.58 to spend on your holiday. That's overshooting your goal.
- But with $75 a month contribution, you earn $147.91 in interest and end up with $2,947.91 in your vacation fund. That's pretty close!
It’s important to note that with savings accounts, APYs are variable. So even though you calculate a scenario where you’re leaving your money in an account for two years at a certain APY, your actual APY in the real world will likely change during that time. It could go up or down. Still, this can give you a good approximation.
If you want a guaranteed rate, try a certificate of deposit
Instead of a savings account to save for your vacation, you could consider an add-on CD, which allows you to lock in an interest rate and make additional contributions (unlike a regular CD, which usually doesn’t let you add money after opening). But you likely won’t be able to add money monthly or take out the money before the CD’s term ends.
A CD is also a good option for saving for large, down-the-line purchases like a home, especially if you can lock in a good rate. You can use this calculator to see how much you’ll earn in a CD if you put $0 in the “how much extra will you contribute” line.
For example, if you have $50,000 saved and open a 5-year CD that pays 4% (and it compounds interest monthly), you’ll earn $11,049.83 in interest at the end of the term without making any extra contributions.
Where are savings rates headed in 2026?
Truth is, rates are trending downward in 2026. Your savings rate often depends on what the Federal Reserve does with its benchmark federal funds rate, as savings rates at competitive banks (i.e., the banks that pay the best rates) tend to follow the movements of the fed rate. The Fed lowered rates three times in late 2025 and if it lowers rates in 2026, available savings and CD rates will likely also move down.
This means the savings APY you’re trying on in your scenario right now is likely to go down in 2026 a bit, or a lot, so it's a good idea to test some lower APY scenarios in the calculator, too.
That said, not all banks will adjust their rates based on the Fed. Some banks, especially big brick-and-mortar banks, often continue paying the same rock-bottom rates regardless of the Fed’s movements.
Next steps
- Check your current savings’ account APY and see if it’s competitive compared to what the best high-yield accounts are offering. If it’s not, consider moving your money to maximize your compound interest earnings while the savings rate remains historically pretty high.
- Automate your savings. Set up automatic transfers into your savings account — either through a split direct deposit or through a recurring transfer from your checking to your savings account. This way, you won’t have the mental burden of having to remember or prioritize saving.
- If you have money you can do without for a certain amount of time, look into opening a CD instead of a savings account, as this will allow you to lock in an interest rate. But it has to be money you won’t need for the length of the CD term because pulling money out of a CD early will trigger an early withdrawal penalty that could cost you all of the interest you earned and maybe even some of your principal.