Calculate compound interest, total amount, and interest earned
quickly and easily.
Please enter valid values greater than or equal to zero.
Calculation Result
Principal Amount
Interest Rate
Time Period
Compounding
Compound Interest
Total Amount
What Is Compound Interest?
Compound interest is interest calculated on both the original
principal and the interest that has accumulated over previous
periods. This means your money can grow faster as interest is
added back to the balance.
Compound Interest Formula
A = P × (1 + r/n)ⁿᵗ
Compound Interest = A − P
Where:
A = Final amount P = Principal amount r = Annual interest rate as a decimal n = Number of times interest is compounded per year t = Time in years
Example
Suppose you invest $10,000 at an annual interest rate of 5%
for 3 years, compounded annually.
A = 10,000 × (1 + 0.05/1)³
Final Amount ≈ $11,576.25
Compound Interest ≈ $1,576.25
Why Compounding Frequency Matters
Interest can be compounded annually, semi-annually, quarterly,
monthly, or daily. Generally, more frequent compounding produces
a slightly higher final amount when the other assumptions remain
the same.
Learn More About Compound Interest
Want to understand how compound interest works? Read our detailed guide
covering the compound interest formula, monthly and annual compounding,
examples, and common calculation mistakes:
A Compound Interest Calculator helps estimate how an investment or loan
can grow when interest is added to the balance and future interest is
calculated on the updated amount.
How Does Compound Interest Work?
With compound interest, accumulated interest is added to the principal
balance. Future interest can then be calculated on both the original
amount and previously accumulated interest.
The more frequently interest is compounded, the more often interest is
added to the balance during a given period.
Compound Interest Formula
A commonly used compound interest formula is:
A = P(1 + r/n)nt
P is the principal amount, r is the annual interest rate expressed as a
decimal, n is the number of compounding periods per year, and t is the
time in years.
Why Use a Compound Interest Calculator?
A compound interest calculator makes it easier to estimate investment
growth, accumulated interest and the total amount over time without
performing complex calculations manually.
Compound Interest Calculator FAQs
What is compound interest?
Compound interest is interest calculated on the original principal plus
interest that has accumulated during previous periods.
How often can interest be compounded?
Depending on the financial product, interest may be compounded annually,
semi-annually, quarterly, monthly or at other intervals.
Does compound interest grow faster than simple interest?
Over time, compound interest can grow faster because previously
accumulated interest can also earn interest.
What affects compound interest growth?
Principal amount, interest rate, compounding frequency and investment
duration all affect the final amount.
Use our free Compound Interest Calculator above to estimate interest and
investment growth quickly.