Compound Interest Calculator
See how your investments grow over time with the power of compound interest.
About Compound Interest Calculator
Compound Interest Calculator shows how an investment or savings account grows when interest is earned on both the principal and accumulated interest. Enter the principal amount, annual interest rate, compounding frequency, and investment term — and see the final balance, total interest earned, and a year-by-year growth chart.
Einstein allegedly called compound interest the eighth wonder of the world. Seeing the effect of time and compounding frequency on growth helps make abstract financial concepts concrete and motivates long-term saving.
Supports daily, monthly, quarterly, and annual compounding, plus optional regular contributions.
Features
- ✓Principal, rate, term, and compounding frequency inputs
- ✓Shows final balance and total interest earned
- ✓Year-by-year growth breakdown
- ✓Optional regular contribution support
- ✓Daily, monthly, quarterly, and annual compounding
Common Use Cases
- →Projecting savings account growth over time
- →Comparing different investment compounding frequencies
- →Understanding the long-term impact of starting to invest earlier
- →Planning retirement savings contributions
Frequently Asked Questions
What is compounding frequency?
How often interest is calculated and added to the principal. Daily compounding earns slightly more than monthly or annual compounding at the same nominal rate.
What's the difference between APR and APY?
APR is the nominal annual rate. APY (Annual Percentage Yield) accounts for compounding and reflects the actual return. This calculator uses the nominal rate you enter.