Compound Interest Calculator

Compound interest shows how money grows faster when earnings are reinvested. Use this calculator to estimate future value from principal, rate, tenure, and compounding frequency.

How it works

Formula: FV = P × (1 + r/n)^(n×t), where r is decimal (7% → 0.07), n is compounding periods per year, t is years.

FAQs

What is compound interest?

Compound interest means your returns can earn additional returns over time.

How does compounding frequency affect the final amount?

More frequent compounding generally increases final value, all else equal.

What inputs do I need to use this calculator?

Principal amount, annual rate, years, and compounding frequency.

How is future value calculated?

We use FV = P × (1 + r/n)^(n×t) for the estimate.

How is compound interest different from simple interest?

Simple interest is linear on principal; compound interest grows on principal plus prior interest.