How it works
This page compounds a single opening balance — no monthly deposits, no inflation toggle. On the defaults ($10,000 at 7% for 10 years) the future value is $19,672 and interest earned is $9,672. That is annual compounding on principal alone: FV = P × (1 + r)^n. Use it when you already have a lump sum parked and want a clean “what does this grow to?” answer without contribution noise. Change the rate or the years one at a time to see how sensitive the pile is: another decade at the same 7% roughly doubles the money again, which is the whole point of leaving principal alone. If you also add money every month, need today’s purchasing power of the future pile, or arrived from a “compound interest calculator / daily compound / UK / compounding calculator” search, open the full compound interest calculator instead — that hub owns contributions, inflation, and the high-volume FAQs. Pair this lump-sum view with simple interest when a product truly does not pay interest on interest, and with the savings goal calculator when you know the destination first and need the monthly ticket price.
Formula
FV = P × (1 + r)^n
Interest earned = FV − P
Worked example — defaults
P = $10,000 · r = 7% · n = 10 years
FV = 10000 × 1.07^10 ≈ $19,672
Interest ≈ $9,672
For monthly contributions + inflation → /en/tools/compound-interest-calculator
Tips
- No contributions here by design — switch to the full calculator when you invest monthly.
- Defaults: $10k / 7% / 10y → about $19,672 (exact annual compound).
- Compare against simple interest if the product does not pay interest-on-interest.
- UK/US cash or brokerage: same formula; only the tax wrapper changes the net.
- Judge long goals in today’s dollars on the full calculator’s inflation field.
Frequently asked questions
- When should I use this instead of the full compound interest calculator?
- Use this for one lump sum with no new deposits. Use the full calculator when you add money monthly, want inflation-adjusted value, or need daily/UK compounding FAQs.
- How is $19,672 calculated?
- $10,000 × (1.07)^10. Annual compounding on principal only — no mid-year deposits.
- Does this compound daily or monthly?
- Annually on the principal. For monthly compounding with contributions, use the full compound interest calculator; over long horizons contribution size matters more than period fine-tuning.
- Can I model withdrawals here?
- No — this sibling stays principal-only. Withdrawal and contribution schedules belong on the full compound interest calculator once that path is available; until then treat spending as a separate cash-flow plan.