Compound Interest Calculator
Calculate compound interest on investments over time
About this calculator
A compound interest calculator helps you determine how your investments will grow over time when interest earns interest. Unlike simple interest, compound interest accelerates your returns by reinvesting earnings, creating exponential growth. This powerful tool is essential for retirement planning, savings goals, and investment decisions, showing you the true potential of long-term investing and helping you make informed financial choices.
How to use
Enter your initial investment amount, annual interest rate, and investment timeframe. Select how often interest compounds (annually, quarterly, monthly, or daily). Add any regular monthly contributions if applicable. Click calculate to see your final balance, total interest earned, and year-by-year growth breakdown.
Frequently asked questions
What's the difference between compound and simple interest?
Compound interest earns returns on both principal and previously earned interest, while simple interest only earns on the original principal amount.
How often should interest compound for maximum growth?
More frequent compounding periods (daily vs. annually) generate slightly higher returns, but the difference diminishes with higher frequencies.
Can I include regular monthly contributions?
Yes, most compound interest calculators allow you to add regular contributions, significantly boosting your long-term investment growth potential.