This calculator demonstrates the power of compound interest. Enter your initial investment, interest rate, duration, and any regular contributions to see how your money can grow over time as interest earns interest.
n = the number of times interest is compounded per year
t = the time the money is invested for, in years
Helpful Tips:
Time is your ally: The longer your money is invested, the more significant the effect of compounding.
Higher rates matter: Even small increases in the annual interest rate can lead to large differences over long periods.
Frequency helps: More frequent compounding (e.g., daily vs. annually) results in slightly higher returns, though the effect diminishes as frequency increases.
Contributions accelerate growth: Regular contributions significantly boost the final value compared to just relying on the initial principal. Conversely, withdrawals will reduce the final amount.
Consider inflation: While this calculator shows nominal growth, remember that inflation reduces the purchasing power of your future balance.
Use this tool to rebalance your investment portfolio back to your desired target allocations. Enter your current holdings, target percentages, and any new deposit/withdrawal amount to see the suggested trades.
(Data typically available from ~1913 onwards)
See how inflation affects the purchasing power of money over time. Enter an amount and select start/end years (based on US CPI data) to calculate its equivalent value in a different year.
The formula used is based on the Consumer Price Index (CPI):
Adjusted Amount = Start Amount * (End Year CPI / Start Year CPI)
Where:
Adjusted Amount = the value in the end year's dollars
Start Amount = the value in the start year's dollars
CPI = Consumer Price Index for the respective year
Inflation represents the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. This calculator uses historical CPI data to show how the value of money changes over time due to inflation.
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Estimate your monthly mortgage payment, including principal, interest, and optionally property taxes, home insurance, and PMI. Enter the home value, down payment, interest rate, and loan term.
The core formula for the monthly principal and interest payment (M) is:
M = P [ i(1 + i)n ] / [ (1 + i)n – 1]
Where:
M = Total monthly mortgage payment (Principal & Interest)
P = Principal loan amount (Home Value - Down Payment)
i = Monthly interest rate (Annual Rate / 12)
n = Total number of payments (Loan Term in years * 12)
The calculator adds estimated monthly taxes, insurance, and PMI (if provided) to this amount for the total estimated payment.
Helpful Tips:
Interest Rate Impact: Small changes in the interest rate can drastically alter your monthly payment and the total interest paid over the life of the loan.
Loan Term Trade-offs: A shorter loan term (e.g., 15 years) means higher monthly payments but significantly less total interest paid. A longer term (e.g., 30 years) lowers the monthly payment but increases the total interest cost substantially.
Down Payment Power: A larger down payment reduces the principal loan amount (P), lowering your monthly payment and potentially helping you avoid PMI if you reach 20% equity.
Beyond P&I: Remember that the total payment (PITI + PMI) is often much higher than just the principal and interest calculated by the core formula. Factor in taxes, insurance, and potential PMI for a realistic estimate.
Extra Payments: Making additional payments towards the principal can shorten your loan term and save considerable interest, but ensure your lender applies extra payments directly to principal.