Use this Compound Interest Calculator to find out how your money grows over time with compounding. Simply enter your principal amount, interest rate, time period, and compounding frequency (yearly, monthly, or daily) to calculate your total interest and final amount. Ideal for savings accounts, fixed deposits, or long-term investments.
A Compound Interest Calculator helps you calculate the amount of money that will accumulate over time when interest is added to the initial principal and also earns interest. It’s ideal for estimating savings growth, investments, and loan costs.
Compound interest means you earn interest not only on the original principal but also on the accumulated interest from previous periods. This creates exponential growth over time.
The formula used is:
A = P × (1 + r/n)^(n×t)
where:
A = Final Amount, P = Principal Amount, r = Annual Interest Rate, n = Number of Times Interest Compounded per Year, t = Number of Years.
You need to enter the principal amount, annual interest rate, time period, and compounding frequency (yearly, quarterly, monthly, or daily).
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest, resulting in faster growth.
Interest can be compounded annually, semi-annually, quarterly, monthly, or even daily. The more frequently it is compounded, the higher the total interest earned.
Yes. You can use it to estimate the future value of savings or investments, as well as to understand how much interest will accrue on a compound interest-based loan.
Yes. It displays the total interest earned in addition to the final amount, helping you understand how much of your total comes from interest growth.
Yes. The longer you invest, the greater the compounding effect. Over time, compound interest can significantly increase your wealth compared to simple interest.