Compound Interest Calculator
Calculate how your money grows with compound interest over time.
Future Value
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Total Interest
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Compound Interest Formula
A = P(1 + r/n)^(nt)
Where: P = Principal, r = Annual rate (decimal), n = Compounds per year, t = Years
The Power of Compounding
Compound interest earns interest on interest, causing wealth to grow exponentially over time.
| Years | $10,000 at 7% | Interest Earned |
|---|---|---|
| 5 | $14,026 | $4,026 |
| 10 | $19,672 | $9,672 |
| 20 | $38,697 | $28,697 |
| 30 | $76,123 | $66,123 |
Frequently Asked Questions
What is compound interest?
Compound interest is when you earn interest on both your initial principal and on the interest you've already earned. Over time, this creates exponential growth in your investment.
How does compound frequency affect returns?
More frequent compounding leads to slightly higher returns. Monthly compounding earns more than annual compounding because your interest starts earning interest sooner.