About this tool
Compound interest earns interest on previous interest. Choose how often it compounds to see the effect on a savings deposit or investment.
How to use Compound Interest Calculator
- Enter the starting amount, annual interest rate and number of years.
- Choose how often interest compounds.
- Press Calculate to see the final balance and total interest earned.
Frequently asked questions
What is the formula?
A = P × (1 + r/n)^(n×t), where P is the principal, r the annual rate, n the compounding periods per year and t the years.
Does more frequent compounding matter?
It helps, but the gain from monthly to daily compounding is small compared to the rate and time.