What is compound interest?

Compound interest is the process of earning interest on both the initial principal and the accumulated interest from previous periods.

How is compound interest calculated?

The formula is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.

Compound Interest Calculator - Accurate Investment Growth Estimator

Calculate Your Investment Growth Over Time

This Compound Interest Calculator helps you estimate how your money grows over time based on your inputs. Perfect for savings plans, retirement accounts, and long-term financial goals.

Principal Amount ($): Annual Interest Rate (%): Time (Years): Compounding Frequency:

How Compound Interest Works

Compound interest means you earn interest on both your original investment and any interest you've already earned. This can accelerate the growth of your money, especially with frequent compounding and over long periods.

Popular Use Cases for This Calculator

Retirement Planning: Estimate how much your IRA or 401(k) might be worth in the future.
College Savings: Forecast growth in education funds like a 529 plan.
Investment Analysis: Compare different compounding strategies for better ROI.
Bank Interest: Understand how your savings account grows monthly or daily.

Frequently Asked Questions

What does "compounding frequency" mean?: It's how often interest is added to the balance. More frequent compounding grows your investment faster.
Can I use this for daily interest?: Yes! Choose “Daily” as the compounding frequency for accurate daily growth estimates.
Is inflation included?: No, this calculator does not account for inflation. It shows nominal value growth only.