Compound Interest Calculator
Calculate how your investments can grow over time with compound interest
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About Compound Interest
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. The effect of compound interest is that your investments grow exponentially over time, rather than linearly.
Why Use Our Compound Interest Calculator?
Our compound interest calculator helps you visualize how your investments can grow over time. By adjusting the parameters, you can see how different contribution amounts, interest rates, and time horizons affect your financial goals.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.
How often should interest compound?
The more frequently interest compounds, the faster your balance grows. Daily compounding will yield slightly more than monthly, which yields more than annually.
Should I make additions at the start or end of the period?
Making additions at the start of the compounding period allows your money to generate returns for a longer time, resulting in slightly higher returns.