Compound Interest Calculator
Calculate how your money grows with compound interest over time
Calculate Compound Interest
How to Use This Calculator
- Enter your initial investment amount (principal)
- Set the annual interest rate
- Choose the investment time period
- Select how often interest compounds
- Click calculate to see the results
Compounding Frequency
Compound Interest Results
Enter your investment details to calculate compound interest
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal and the accumulated interest from previous periods. It's often called "interest on interest" and can significantly boost your investment returns over time.
How does compounding frequency affect returns?
The more frequently interest compounds, the higher your returns will be. Daily compounding typically provides the highest returns, followed by monthly, quarterly, semi-annually, and annually.
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any previously earned interest. Compound interest grows exponentially over time.
How can I maximize compound interest?
To maximize compound interest, start investing early, invest regularly, choose investments with higher returns, and let your money compound over long periods without withdrawing.