Compound Interest Calculator

Calculate how your investments grow over time with compound interest

Compound Interest Calculator

Compound Interest Calculator

What is Compound Interest?

Compound interest is the interest earned on both the principal amount and the accumulated interest from previous periods. This powerful concept allows your money to grow exponentially over time, making it essential for long-term investment planning.

Unlike simple interest, which only calculates interest on the original principal, compound interest reinvests your earnings, creating a snowball effect that accelerates your wealth growth.

Key Benefits of Compound Interest

  • Exponential Growth: Your money grows faster over time
  • Time Advantage: The earlier you start, the more you benefit
  • Passive Income: Your money works for you automatically
  • Retirement Planning: Essential for building long-term wealth
  • Inflation Protection: Helps maintain purchasing power over time
  • Financial Freedom: Creates sustainable income streams

How to Use Our Compound Interest Calculator

1. Enter Your Investment Details

Input your principal amount, annual interest rate, and time period in years.

2. Choose Compounding Frequency

Select how often interest is compounded: annually, monthly, daily, etc.

3. Review Results

See your final amount, total interest earned, and yearly breakdown.

Compound Interest Examples

$10,000 at 7% for 10 years:
Final Amount: $19,671.51
Interest Earned: $9,671.51
$5,000 at 8% for 20 years:
Final Amount: $23,304.79
Interest Earned: $18,304.79
$25,000 at 6% for 30 years:
Final Amount: $143,587.25
Interest Earned: $118,587.25

Compounding Frequency Impact

More frequent compounding periods result in higher returns. Here's how different frequencies affect your investment:

Annual: Interest compounded once per year
Monthly: Interest compounded 12 times per year
Daily: Interest compounded 365 times per year

Why Choose Our Compound Interest Calculator?

Features

  • • Multiple compounding frequencies
  • • Yearly breakdown table
  • • Calculation history
  • • Export results to CSV
  • • Copy and share functionality
  • • Mobile-friendly design

Perfect For

  • • Retirement planning
  • • Investment analysis
  • • Savings goal setting
  • • Financial education
  • • Investment comparison
  • • Long-term wealth building