Compound Interest Calculator
See how your money grows over time with compound interest. Enter your principal, rate, and time to visualize your investment growth.
Future Value
$0
Total Contributions
$0
Interest Earned
$0
How compound interest works.
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, your money grows exponentially because you earn interest on your interest.
The formula is: A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is time in years. Adding regular contributions accelerates growth significantly.
Frequently asked questions.
What's the difference between simple and compound interest?
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus all previously earned interest, making your money grow faster over time.
How often should interest compound?
More frequent compounding (daily vs. annually) results in slightly more interest earned. However, the difference between monthly and daily compounding is minimal for most savings accounts.