Calculate final balance and total interest for any principal, annual rate, time period, and compounding frequency. Includes a full year-by-year growth table.
| Year | Balance | Interest Earned | Contributions |
|---|
A compound interest calculator shows how money grows when interest is added to the principal regularly. Unlike simple interest, compound interest earns "interest on interest," which causes exponential growth over time. The formula is A = P(1 + r/n)^(nt), where P is principal, r is the annual rate, n is compounding frequency per year, and t is time in years.
Compound interest is interest calculated on both the initial principal and the accumulated interest. It grows faster than simple interest.
It is how often interest is applied per year. Monthly compounding (12×/yr) grows faster than annual (1×/yr) at the same nominal rate.
Annual Percentage Yield (APY) is the effective annual rate after compounding. APY = (1 + r/n)^n - 1. It lets you compare accounts with different compounding frequencies.
Yes. Enter a monthly contribution amount and the calculator will include those deposits in the year-by-year growth table.