Compound Interest Calculator
See how your investments grow with compound interest
How to Use
- Enter the initial principal amount
- Enter the annual interest rate (%)
- Enter the investment period in years
- Select compounding frequency (monthly, quarterly, yearly)
- View final amount and total interest earned
FAQ
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It makes your money grow faster than simple interest, where interest is only calculated on the principal.
How does compounding frequency affect returns?
More frequent compounding (e.g., monthly vs. yearly) results in slightly higher returns because interest is added to the principal more often. However, the difference is usually small for moderate interest rates.