Compound Interest Calculator: Unlock Exponential Growth
Our Compound Interest Calculator shows how interest on interest accelerates wealth. Supports contributions and multiple frequencies.
What is Compound Interest?
Earning interest on principal and prior interest. Leads to exponential growth.
Formula
A = P × (1 + r/n)^(nt) + PMT × (((1 + r/n)^(nt) - 1) / (r/n))
Compounding Frequencies Compared
| Frequency | n | Effect |
|---|---|---|
| Daily | 365 | Highest growth |
| Monthly | 12 | Common for savings |
| Annually | 1 | Lowest |
Example: $10K at 7%, 10 Years, Monthly Compound
- Future Value: $19,671
- Interest: $9,671
- APY: 7.23%
Why Compound?
- Time is key — start early
- Reinvest dividends
- Add regular contributions
- Compare with ROI
Tips
- Higher frequency = better
- Automate contributions
- Reinvest earnings
Limitations
- Assumes fixed rate
- No taxes/withdrawals
- Market investments vary
Conclusion
Use our calculator to plan. Explore Finance tools.