Compound Interest Calculator
Determine how much your money can grow over time with compound interest.
Total Balance
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Interest Earned
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How Compound Interest Works
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
The Magic of Compounding
Unlike simple interest, which is calculated only on the principal amount, compound interest allows your wealth to grow exponentially. As you earn interest on your interest, the total amount grows faster over time.
Frequently Asked Questions
What is the formula for compound interest?
The standard formula is A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the time in years.
Does frequency matter?
Yes! More frequent compounding (e.g., daily or monthly vs. annually) results in higher returns over the same period, as interest is added back to the principal sooner.