Compound interest calculator

Calculate how your money grows with compound interest. See the full formula breakdown and year-by-year growth.

Principal ($) Annual rate (%) Years Compounds/year

Compound interest formula

A = P(1 + r/n)^nt

Where: A = final amount, P = principal (initial investment), r = annual interest rate (decimal), n = compounds per year, t = time in years.

How compound interest works

Unlike simple interest which is calculated only on the principal, compound interest is calculated on the principal plus any previously earned interest. This means your money grows faster over time — the interest earns interest. The more frequently interest compounds, the more you earn.

Example

$1,000 at 5% compounded monthly for 10 years: A = 1000(1 + 0.05/12)^(12×10) = $1,647.01. You earn $647.01 in interest.

Popular calculations

$1,000 at 5% for 10 years (monthly) $5,000 at 7% for 20 years (monthly) $10,000 at 4% for 5 years (quarterly) $500 at 6% for 30 years (monthly) $2,000 at 3% for 15 years (annually) $10,000 at 8% for 10 years (daily)

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