Free Compound Interest Calculator & Portfolio Growth
Visualize the power of compounding with our advanced dividend compound interest calculator. Plan your path to financial independence by factoring in contributions, taxes, and dividend growth. Need more information?
Why Use a Compound Growth Calculator?
Albert Einstein reputedly called compound interest the "eighth wonder of the world." Small, consistent contributions can grow into a substantial portfolio over time thanks to the exponential nature of compounding.
Key Features
- Dividend Reinvestment: See how reinvesting dividends accelerates your wealth.
- Regular Contributions: Calculate the impact of monthly savings additions.
- Tax Planning: Factor in capital gains or dividend taxes for a realistic net result.
Understanding the Inputs
- Initial Amount: The starting value of your portfolio today.
- Yearly Appreciation: The expected annual increase in your asset prices (e.g., 7-10% for stocks, treasuries, real estate etc.).
- Dividend Yield: The annual percentage paid out in dividends.
- Contribution Growth: How much you increase your monthly savings each year (e.g., with salary raises).
- Tax Rate: The percentage of your gains that are taxable (e.g., 15% for capital gains, 20% for dividends).
- Years: The number of years you plan to hold your portfolio.
- Monthly Contributions: The amount you contribute to your portfolio each month.
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Use our Deep Screener to find the high-quality stocks that will power your compound interest engine.
Frequently Asked Questions
- Compound growth is the process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.
- CAGR is calculated by taking the nth root of the total growth percentage, where n is the number of years. Our calculator does this automatically for you.
- Yes, this is a specialized dividend compound interest calculator. You can input your dividend yield and expected dividend growth rate to see the powerful effect of reinvesting dividends.