Compound Interest Calculator
Calculate compound interest growth over time
About this calculator
A compound interest calculator helps you determine how your investments or savings will grow over time when interest is earned on both the principal amount and previously earned interest. This powerful tool is essential for financial planning, retirement savings, and investment decisions. By inputting your initial amount, interest rate, compounding frequency, and time period, you can visualize the exponential growth potential of your money and make informed decisions about long-term financial goals.
How to use
Enter your initial principal amount, annual interest rate as a percentage, and investment time period in years. Select how frequently interest compounds (annually, quarterly, monthly, or daily). Click calculate to see your total accumulated amount, total interest earned, and year-by-year breakdown of growth.
Frequently asked questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and accumulated interest from previous periods, creating exponential growth over time.
How often should interest compound for maximum growth?
More frequent compounding (daily vs. annually) results in slightly higher returns, though the difference diminishes at higher frequencies.
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal, while compound interest includes interest earned on previous interest payments.