Compound Interest Calculator
Calculate how your investments grow over time with the power of compound interest. Choose your compounding frequency, add optional monthly contributions, and see a detailed year-by-year breakdown of your investment growth.
Compound Interest Calculator
FAQ
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This "interest on interest" effect causes wealth to grow exponentially over time.
How does compounding frequency affect returns?
More frequent compounding (daily vs annually) results in slightly higher returns because interest is calculated and added to the principal more often. The difference is most noticeable at higher interest rates and longer time periods.
What is the compound interest formula?
A = P(1 + r/n)^(nt), where A is the final amount, P is principal, r is annual rate (decimal), n is compounding periods per year, and t is time in years.