Compound Interest Calculator

Calculate how your money grows with the power of compound interest

Compound Interest Calculator

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Initial investment amount
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Expected annual return
Years
Investment duration
How often interest is compounded

Understanding Compound Interest

Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It's often called "interest on interest" and can significantly boost your investment returns over time.

The Compound Interest Formula:

A = P(1 + r/n)^(nt)
Where:
A = Final amount
P = Principal amount
r = Annual interest rate
n = Number of times interest is compounded per year
t = Time in years

Key Benefits:

  • Exponential Growth: Your money grows faster over time
  • Time Advantage: Starting early makes a huge difference
  • Passive Income: Your money works for you
  • Wealth Building: Key to long-term financial success

Investment Options:

  • High-Yield Savings: Compound interest with easy access
  • Certificates of Deposit: Fixed-term compound growth
  • Treasury Securities: Government-backed compound interest
  • Index Funds: Diversified market compound growth
  • Corporate Bonds: Higher yields with compound interest