Compound Interest Calculator
Calculate compound interest, total amount, and investment growth quickly and easily with different compounding frequencies.
Calculation Result
What Is Compound Interest?
Compound interest is interest calculated on both the original principal and the interest that has accumulated over previous periods. This allows accumulated interest to become part of the balance used for future interest calculations.
Compound Interest Formula
Compound Interest = A − P
Where:
A = Final amount
P = Principal amount
r = Annual interest rate expressed as a decimal
n = Number of compounding periods per year
t = Time in years
Example of Compound Interest
Suppose you invest $10,000 at an annual interest rate of 5% for 3 years, compounded annually.
Final Amount ≈ $11,576.25
Compound Interest ≈ $1,576.25
Why Compounding Frequency Matters
Interest may be compounded annually, semi-annually, quarterly, monthly or daily. When the principal, rate and time remain the same, more frequent compounding generally results in a slightly higher final amount.
How to Use the Compound Interest Calculator
Enter the principal amount, annual interest rate and investment period. Then select how frequently the interest is compounded and click Calculate. The calculator displays the compound interest earned and the total amount.
Learn More About Compound Interest
For a detailed explanation of compound interest, formulas, examples and common calculation methods, read our guide:
How to Calculate Compound Interest: Formula, Examples & Easy GuideWhat Affects Compound Interest Growth?
The principal amount, annual interest rate, investment duration and compounding frequency all affect the final value. A larger principal, higher rate or longer time period can increase the amount of interest earned when the other factors remain unchanged.
Compound Interest Calculator FAQs
What is compound interest?
Compound interest is interest calculated on the original principal plus interest accumulated during previous compounding periods.
How often can interest be compounded?
Depending on the financial product, interest may be compounded annually, semi-annually, quarterly, monthly, daily 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 contribute to future interest calculations.
What is the difference between simple and compound interest?
Simple interest is calculated only on the original principal, while compound interest can be calculated on the principal plus accumulated interest.
Does more frequent compounding always increase the result?
Under the same nominal annual rate and other assumptions, more frequent compounding generally produces a higher final amount. Actual financial products may use different rates, fees or terms.
Can I use this calculator for investment estimates?
Yes. You can use it to estimate how an amount may grow when a stated annual rate is compounded at the selected frequency. Actual investment returns may vary.
Important Note
This calculator provides estimates for general informational and educational purposes. Actual financial products may have fees, taxes, changing interest rates, deposits, withdrawals or other terms that can affect the final amount. Verify important financial calculations with the applicable financial institution or a qualified professional.
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