📖 Overview
Use this calculator to estimate future value with monthly compounding for savings and investments.
⚙️ How It Works
Projects future value using monthly compounding — interest is calculated and added every month.
The Formula
A = P × (1 + r/12)^(12×t)
| A | Future value |
| P | Principal (starting amount) |
| r | Annual interest rate as decimal (e.g. 6% → 0.06) |
| t | Time in years |
💡Monthly compounding grows faster than annual compounding. At 6% annual rate: $10,000 with annual compounding = $17,908 after 10 years; with monthly compounding = $18,194.
Practical Tips
💡 Monthly compounding is typical for most savings accounts and mortgages.
💡 Starting early is more powerful than increasing the rate.
Frequently Asked Questions
❓ How much more does monthly vs annual compounding earn?
A small but meaningful amount — the difference grows with time and rate.
❓ What rate should I use?
Use your savings account APY or expected market return. Be conservative.