📈 Compound Interest Calculator
See how your money grows over time
How Compound Interest Works
Formula
A = P × (1 + r/n)^(n×t)
- 1P = principal (initial investment), r = annual interest rate, n = compounding frequency per year, t = time in years.
- 2Divide the annual rate by the compounding frequency: r/n.
- 3Add 1: (1 + r/n).
- 4Raise to the power of total compounding periods: (1 + r/n)^(n×t).
- 5Multiply by the principal: A = P × (1 + r/n)^(n×t).
- 6Subtract the principal to find total interest earned.
About Compound Interest Calculator
Calculate compound interest with detailed year-by-year breakdown. See how your money grows over time with different rates and compounding frequencies.
Frequently Asked Questions
What is compound interest?
Compound interest is interest earned on both the original principal and previously accumulated interest. It makes your money grow exponentially over time.
How does compounding frequency affect returns?
More frequent compounding (daily vs. yearly) yields slightly more interest because interest is calculated on a larger balance more often.
What is the Rule of 72?
Divide 72 by your annual interest rate to estimate how many years it takes to double your money. At 6%, it takes ~12 years.