Compound Interest Calculator
Calculate how your investment grows over time with compound interest and regular contributions.
Future Value
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Total Contributions
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Total Interest Earned
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Interest % of Total
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Compound Interest Formula
A = P(1 + r/n)nt
- A = Future value
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Compounding frequency per year
- t = Time in years
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This "interest on interest" effect causes wealth to grow exponentially over time.
How does compounding frequency affect returns?
More frequent compounding (daily vs annual) leads to slightly higher returns because interest begins earning interest sooner. However, the difference becomes smaller as frequency increases.