Compound Interest Calculator
Use our compound interest calculator to estimate how your money grows over time with interest. See total value and interest earned based on your inputs.
Results
What is Compound Interest?
Compound interest is the interest calculated not just on your initial investment but also on the interest previously added. Over time, it helps your savings grow much faster compared to simple interest.
How to Use This Calculator
- Enter your initial investment amount.
- Provide the interest rate and duration in years.
- Choose how often the interest should be compounded.
- Click “Calculate” to see how your investment grows.
Example: What Will $5,000 Be Worth in 15 Years?
If you invest $5,000 at an annual interest rate of 6%, compounded monthly for 15 years:
- Total Future Value: $12,070.43
- Total Interest Earned: $7,070.43
Year-by-Year Breakdown
| Year | Balance |
|---|---|
| 1 | $5,309.89 |
| 5 | $6,744.25 |
| 10 | $9,095.85 |
| 15 | $12,070.43 |
Compound Interest Formula
- A: Final Amount
- P: Principal Amount
- r: Annual Interest Rate (in decimal)
- n: Compounding Frequency (times per year)
- t: Time Period in Years
Frequently Asked Questions
What is compound interest?
It's interest earned on both the initial amount and any interest already added to the balance.
How is compound interest different from simple interest?
Simple interest is only calculated on the principal. Compound interest includes interest on interest.
What is the best compounding frequency?
More frequent compounding (like daily or monthly) yields higher returns than annual compounding.
Can I calculate compound interest manually?
Yes! Just use the formula shown above and plug in your own values for principal, rate, time, and frequency.