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Compound Interest Calculator
USD
%
years
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What is Compound Interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. Unlike simple interest, compound interest allows your money to grow exponentially over time because you earn interest on both your original investment and the interest it has already earned.
This calculator helps you understand how compound interest works and how different compounding frequencies (daily, monthly, quarterly, annually) affect your returns.
Compound Interest Formula
A = P(1 + r/n)^(nt)
- • A = Final amount
- • P = Principal amount
- • r = Annual interest rate (as decimal)
- • n = Number of times interest compounds per year
- • t = Time in years
Compounding Frequency Impact
The more frequently interest compounds, the more you earn:
- Daily compounding earns more than monthly
- Monthly compounding earns more than quarterly
- Quarterly compounding earns more than annually
- This effect becomes more significant over longer time periods
Related Financial Calculators
Welcome to our website!
Amancalc.com
Amancalc.com