Use this calculator to see how your money can grow over time with compound interest. Enter your details below and click Calculate to see a list of balances and corresponding chart.

What is Compound Interest?

Compound interest is the process of earning interest on both the initial amount you invest (the principal) and the interest that accumulates over time. Unlike simple interest, which is calculated only on the principal, compound interest allows your savings or investments to grow much faster.

 

The Calculator

 

Formula for Compound Interest

Where:

• A = Future value of the investment
• P = Initial investment (principal)
• r = Annual interest rate (as a decimal)
• n = Number of times interest is compounded per year
• t = Number of years

Example: If you invest $1,000 at an interest rate of 5% per year, compounded monthly, in 10 years your money will grow to approximately $1,647. This assumes you did not add any additional money each month.

How can I maximize my compound interest earnings?

• Start investing as early as possible.
• Contribute regularly to your savings or investment accounts.
• Choose accounts with more frequent compounding (e.g., daily or monthly).