Compound Interest Calculator
Find out how your investment will grow over time with compound interest
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Frequently Asked Questions
What is compound interest?
Compound interest is when you earn interest not only on your initial investment but also on the accumulated interest from previous periods. This creates a snowball effect that can significantly grow your money over time.
How does compound frequency affect returns?
The more frequently interest is compounded (daily vs monthly vs yearly), the more your money will grow. This is because you're earning interest on your interest more often.
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest, leading to faster growth over time.
How can I maximize compound interest?
To maximize compound interest: 1) Start early to give your money more time to grow, 2) Make regular contributions, 3) Choose investments with higher returns, and 4) Reinvest your earnings instead of withdrawing them.