Compound Interest Calculator
Use this calculator to see how compound interest can grow your investments over time with regular contributions. Compare daily, monthly, and annual compounding to maximize your returns.
Future Value: $0.00
| Initial Investment | $0.00 |
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| Total Contributions | $0.00 |
| Total Interest | $0.00 |
| End Balance | $0.00 |
| Years | 0 |
Future Value: $0.00
| Principal Amount | $0.00 |
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| Total Interest | $0.00 |
| End Balance | $0.00 |
| Years | 0 |
Future Value: $0.00
| Initial Investment | $0.00 |
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| Total Contributions | $0.00 |
| Total Interest | $0.00 |
| End Balance | $0.00 |
| Days | 0 |
Future Value: $0.00
| Initial Investment | $0.00 |
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| Total Profit | $0.00 |
| Total Withdrawals | $0.00 |
| End Balance | $0.00 |
| Trading Days | 0 |
About Compound Interest
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Albert Einstein famously called compound interest "the eighth wonder of the world" because of its powerful effect on growing wealth over time.
How Compound Interest Works
With compound interest, you earn interest on both the money you've saved and the interest you earn. The more frequently interest is compounded, the greater the return. Here's the formula for compound interest:
A = P × (1 + r/n)nt
Where:
- A = the future value of the investment/loan, including interest
- P = the principal investment amount (the initial deposit or loan amount)
- r = the annual interest rate (decimal)
- n = the number of times that interest is compounded per year
- t = the number of years the money is invested or borrowed for
Compound Interest vs Simple Interest
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal amount and also on the accumulated interest of previous periods. Over time, compound interest will generate higher returns than simple interest, especially when compounding occurs frequently (daily or monthly).
The Power of Regular Contributions
Adding regular contributions to your investment can significantly boost your returns due to compound interest. Even small, regular contributions can grow substantially over long periods. This calculator helps you visualize how your money can grow with different contribution amounts and compounding frequencies.