Compound Interest Calculator
Calculate compound interest with different compounding frequencies. See how your investment grows over time with detailed breakdown.
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Formula
A = P(1 + r/n)^(nt) where A=final amount, P=principal, r=rate, n=compounds per year, t=yearsExample
principal:10000
rate:5
years:10
compounds:12
final Amount:16470.09
interest:6470.09
Frequently Asked Questions
Compound interest is interest calculated on the initial principal plus all accumulated interest from previous periods. It grows faster than simple interest because you earn "interest on interest".
Monthly compounding calculates interest 12 times per year, while annual compounding calculates once per year. More frequent compounding results in higher returns. For example, $10,000 at 5% for 10 years: monthly = $16,470, annual = $16,289.
Use the formula A = P(1 + r/n)^(nt). For $10,000 at 5% annually for 10 years: A = 10,000(1 + 0.05/1)^(1×10) = $16,289. Interest earned = $16,289 - $10,000 = $6,289.
More frequent compounding yields higher returns. From best to worst: daily, monthly, quarterly, semi-annually, annually. However, the difference between daily and monthly is usually minimal.
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Visit Learning HubLast updated: 2025-11-13