Compound Interest Calculator

Understanding how your money accumulates over time is vital for a sound financial strategy. Our Compound Interest Calculator allows you to assess the potential value of your investments or savings by leveraging the benefits of compounding. Whether you’re aiming for long-term financial growth, evaluating investment yields, or examining different financial offerings, this tool provides fast, precise, and trustworthy outcomes.

What is Compound Interest?

Compound interest is the interest calculated on your initial principal plus the accumulated interest from previous periods. In simple terms, it means your money earns interest on interest.

Why compound interest matters?

• It enables faster wealth accumulation compared to simple interest.
• Your investment grows exponentially over time.
• The earlier you start saving, the greater the compounding benefits.
• It’s widely used in bank deposits, mutual funds, loans, credit cards, and business finance.

Formulae for Compound Interest

General Compound Interest Formula

$$A=P(1+\frac{r}{n}){}^{nt}$$

Where:

• $A$ = Final amount
• $P$ = Principal amount
• $r$ = Annual interest rate (in decimal)
• $n$ = Number of compounding periods per year
• $t$ = Time in years

Compound Interest Amount

$$\text{CI}=A–P$$

Annually Compounded Interest

$$A=P(1+r){}^t$$

Interest is added once every year.

Semi-Annually Compounded Interest

$$A=P(1+\frac{r}{2}){}^{2t}$$

Interest is added twice a year.

Quarterly Compounded Interest

$$A=P(1+\frac{r}{4}){}^{4t}$$

Interest is added four times a year.

Monthly Compounded Interest

$$A=P(1+\frac{r}{12}){}^{12t}$$

Interest is added every month.

Daily Compounded Interest

$$A=P(1+\frac{r}{365}){}^{365t}$$

Interest is added daily.

Weekly Compounded Interest

$$A=P(1+\frac{r}{52}){}^{52t}$$

Interest is added weekly.

How to find Compound Interest using our calculator?

1. Enter the “Principal Amount”.
2. Enter the “Annual Rate of Interest”.
3. Enter the “Time Period” for which interest is calculated, in years, months, weeks, and days.
4. Choose the “Compounding Frequency”, the intervals at which the interest will be added, i.e., Annually, Semi-Annually, Quarterly, Monthly, Weekly, and Daily.