Compound Interest Calculator
Use this Compound Interest Calculator to estimate how your savings or investments can grow over time when interest is calculated on both the initial amount and the accumulated interest.
This calculator helps you understand the power of compounding by showing how your principal amount increases based on the interest rate and time period you choose.
How Does Compound Interest Work?
Compound interest is calculated by applying interest not only on the original principal but also on the interest earned during previous periods. Over time, this compounding effect can significantly increase the total value.
Why Use a Compound Interest Calculator?
A compound interest calculator helps you visualize growth over time and compare different interest rates and durations. It is useful for planning long-term savings and understanding how time impacts returns.
What Factors Affect Compound Interest?
The final amount depends on the principal amount, interest rate, compounding frequency, and the total investment duration. Even small changes in these factors can produce different results. This calculator lets you adjust the compounding frequency, choose a currency symbol, and include a regular monthly contribution so you can see how different saving patterns may change the final amount.
FAQs
Compound interest is interest calculated on both the original principal and the accumulated interest from previous periods.
Simple interest is calculated only on the principal amount, while compound interest grows on both the principal and previously earned interest.
Yes, compound interest can be calculated monthly, quarterly, or annually depending on the compounding frequency.