Compound interest calculator
Enter the amount, annual rate, term and compounding frequency to see what your money grows to and how much of it is interest.
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How to use it
- Enter principal, annual interest rate, term and compounding frequency.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
A = P × (1 + r/n)^(n × t), where n is the number of compounding periods per year. Interest = A − P.
Example
Inputs: Principal = 1,000 your currency, Annual interest rate = 5 %, Term = 10 years, Compounding frequency = Monthly. Result: Final amount: 1,647.01; Total interest: 647.01; Effective annual rate: 5.1162%.
Limits and caveats
- Assumes the rate stays fixed and nothing is withdrawn.
- Taxes and bank fees are not included.
Questions about this tool
How is compound interest different from simple interest?
With compounding, interest is added to the balance and earns interest itself next period. Simple interest is only ever charged on the original amount.
Does compounding frequency change the result much?
A little. At 5% for one year, monthly compounding gives an effective 5.116% against 5% with annual compounding.
What is the effective annual rate?
It is how much your balance actually grows in a year once compounding is counted, also called APY.