Compound Interest Calculator
Calculate how your money grows over time with compound interest. Supports various compounding frequencies.
Investment Details
Total Future Value
$16,105.10
Total Principal
$10,000.00
Total Interest
+$6,105.10
Your investment will grow by 61.1% over 5 years.
About Compound Interest Calculator
The Power of Compounding
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Einstein famously called it the "eighth wonder of the world."
Why Compounding Frequency Matters
The frequency at which interest is compounded makes a significant difference over long periods.
- Yearly: Interest is added once a year.
- Monthly: Interest is added every month. Because you start earning interest on your interest sooner, monthly compounding results in higher final returns compared to yearly compounding at the exact same rate.
Frequently Asked Questions
How does compound frequency affect my returns?
The more frequently interest is compounded, the higher your overall returns will be. For example, monthly compounding yields a slightly higher final amount than yearly compounding at the exact same interest rate, because you earn interest on your interest sooner.