Compound Interest Calculator

Whether you're planning for savings, investments, or loans, our easy-to-use calculator helps you see how small contributions can grow into big rewards over time. Input your numbers, watch the magic of compound interest unfold, and take control of your financial future today.

Initial Principal Amount ($):

Annual Interest Rate (%):

Time Period (Years):

Compound Frequency:

Additional Contribution Amount ($):

Contribution Frequency:

Display Breakdown:

Display Type:

Table Graph

What is Compound Interest?

Compound interest is a financial concept where interest is calculated not only on the initial principal amount but also on the accumulated interest from previous periods, creating a snowball effect. Unlike simple interest, which is applied only to the original sum, compound interest allows your money to grow - or your debt to increase - exponentially over time. This happens because each interest calculation builds on the updated total, amplifying the impact with every cycle, whether it's daily, monthly, or annually. It's the key principle behind long-term savings growth in accounts like investments or the rising cost of loans if unpaid, making it a powerful force in personal finance.

How is compound interest calculated?

To calculate compound interest, use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the time in years.

How to make compounding interest work for you

Our top tips to take advantage of compound interest:

1. Start Early: Begin saving or investing as soon as possible - the longer your money compounds, the more it grows.
2. Invest Regularly: Add consistent contributions, even small amounts, to boost your principal and accelerate growth.
3. Compound Frequently: Opt for options that compound more often (e.g., daily or monthly) to increase earnings.
4. Choose Higher Rates: Seek accounts or investments with the best interest rates to maximize returns.
5. Avoid Withdrawals: Let your money sit and grow uninterrupted to fully harness the power of compounding.
6. Reinvest Earnings: Roll over interest or dividends back into your principal to keep the cycle going stronger.

With patience and discipline, compound interest can turn modest savings into significant wealth over time!