Compound Interest Calculator
Calculate the power of compound interest on your investments over time. See how your money grows with regular contributions and compound returns.
Calculator
The starting amount you're investing
Expected annual return rate
How long you plan to invest
How often interest is compounded
Results
Initial Principal$10,000
Final Amount$20,096.61
Total Interest Earned$10,096.61
Time Period10 years
About Compound Interest
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is earned on the principal sum plus previously accumulated interest.
How It Works
The formula for compound interest is: A = P(1 + r/n)^(nt), where:
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times interest is compounded per year
- t = Number of years
Key Takeaways
- The more frequently interest is compounded, the more your investment grows
- Time is your greatest asset - start investing early
- Even small differences in interest rates can have significant impacts over time
- Compound interest is often called the "eighth wonder of the world"