Compound Interest Calculator
Find out how your investment will grow over time with compound interest
Investment Parameters
Projected Growth
(29 Years projection)
Frequently Asked Questions
Everything you need to know about compound interest formulas, compounding frequencies, and accelerating wealth accumulation.
How do Canadian banks compound interest on HISAs vs. GICs?
Canadian High-Interest Savings Accounts (HISAs) calculate interest daily on your closing balance (Balance × Rate ÷ 365) and pay it into your account once a month—meaning your money compounds monthly at (1 + Rate ÷ 12)^12. Multi-year compound GICs (1 to 5 years) typically compound annually on each anniversary date at (1 + Rate)^Years, while short-term GICs under 1 year pay simple daily interest at maturity without compounding.
How does compound frequency affect my effective annual yield (APY)?
The more frequently interest is paid and reinvested into your principal (daily vs. monthly vs. annually), the higher your Effective Annual Yield (APY). For example, a 3.00% nominal rate on a $10,000 balance earns $300.00 with annual compounding, $304.16 with monthly compounding (standard for Canadian HISAs), and $304.53 with daily compounding.
What is the difference between simple interest and compound interest?
Simple interest is calculated solely on your original principal deposit (Principal × Rate × Time), so your annual earnings stay flat. Compound interest calculates returns on both your initial principal and all previously credited interest payouts, creating exponential growth over multi-year horizons.
How are regular contributions factored into the compound interest calculation?
Your initial deposit earns interest from Day 1, while recurring weekly, monthly, or annual contributions are added at the end of each contribution period and begin compounding in every period thereafter.