Compound Interest Calculator

See how your investment grows with the power of compounding

Investment Details

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Growth Summary

Enter investment details to see growth summary

Year-by-Year Growth

Year-by-year breakdown will appear here

About Compound Interest

Compound interest is interest calculated on the initial principal AND the accumulated interest from previous periods. It's often called the "eighth wonder of the world" because of its exponential growth potential over time.

Formula

A = P(1 + r/n)^(nt)

A = Final amount
P = Principal
r = Annual interest rate (decimal)
n = Compounding frequency per year
t = Time in years

Key Insights

  • More frequent compounding = slightly higher returns
  • Time is the most powerful factor in compounding
  • Regular contributions dramatically increase final balance
  • Rule of 72: divide 72 by rate to estimate doubling time