📈 Compound Interest Calculator
See how your money grows when interest earns interest.
📈 Compounding builds wealth — start investing. Free market insights on Telegram.
📣 Join Free Telegram Open a Free Investment Account →How compound interest works
Compound interest means you earn interest not just on your original money, but also on the interest already added. Over time this snowballs, which is why Einstein reportedly called it the "eighth wonder of the world".
A = P × (1 + r/n)n·t
Where P = principal, r = yearly rate (as a decimal), n = times compounded per year, and t = years. More frequent compounding (monthly or daily) grows slightly faster than yearly.
The lesson: start early
Because compounding builds on itself, the number of years matters even more than the amount. Starting a small investment early beats a bigger one started late.
Frequently Asked Questions
- What's the difference between simple and compound interest?
- Simple interest is calculated only on the original amount. Compound interest is calculated on the original amount plus all the interest earned so far — so it grows faster.
- Does more frequent compounding earn more?
- Yes, but only slightly. Daily compounding earns a little more than yearly at the same rate. The interest rate and time period matter far more.
- Is this calculator free?
- Yes — 100% free, no sign-up, and it runs entirely in your browser.
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⚠️ This calculator is for educational and estimation purposes only and is not financial advice.