Calculate Compound Interest
Results
Yearly Growth
| Year | Balance | Interest Earned |
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How Compound Interest Works
Compound interest allows your money to grow by earning interest on both the original investment and previously earned interest. The longer your money remains invested, the more powerful compounding can become.
In this formula, A is the future value, P is the initial investment, r is the annual interest rate as a decimal, n is the number of compounding periods per year, and t is the number of years.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the original amount plus interest accumulated during previous periods.
What does compounding frequency mean?
Compounding frequency describes how often interest is added to the account. Common options include annually, quarterly, monthly, and daily.
Does compound interest grow faster over longer periods?
Generally, keeping money invested for a longer period gives compounding more time to increase the balance.
Is this calculator free?
Yes. This compound interest calculator is free to use directly in your web browser.