Compound Interest Calculator

Understanding Compound Interest

How Compound Interest Works

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. Unlike simple interest, which only earns on the principal amount, compound interest allows your investment to grow exponentially over time as you earn “interest on interest.”

The Power of Compounding

The key benefit of compound interest is that your money grows faster the longer it remains invested. Small, regular contributions combined with compound interest can lead to significant wealth accumulation over decades.

Key Features of Our Compound Interest Calculator

Flexible Contribution Options

Calculate with regular contributions at different frequencies (monthly, quarterly, annually) to see how consistent investing affects your returns.

Multiple Compounding Frequencies

Compare how different compounding intervals (daily, monthly, quarterly, annually) impact your investment growth over time.

Detailed Results Breakdown

See exactly how much comes from your initial investment, contributions, and interest earnings for complete transparency.

Frequently Asked Questions

+ What’s the difference between simple and compound interest?

+ How often should interest compound for maximum growth?

+ How important are regular contributions to compound growth?

+ What’s the best way to take advantage of compound interest?