What is Compound Interest?
Compound interest is the interest calculated on the initial principal amount, which also includes all accumulated interest from previous periods. This means your money grows faster over time as you earn interest on both your original investment and the interest you've already earned.
Use our free compound interest calculator below to see how your investments can grow over time. Enter your principal amount, interest rate, time period, and any additional contributions to visualize your potential returns with interactive charts.
How to Use the Compound Interest Calculator
- Principal Amount: Enter the initial amount you're investing or saving.
- Annual Interest Rate: Enter the yearly interest rate percentage your investment will earn.
- Time Period: Specify how long you plan to invest (in years and months).
- Contribution Amount: Optionally add regular contributions to boost your investment growth.
- Contribution Frequency: Choose whether you'll contribute monthly or annually.
- Compounding Frequency: Select how often interest is compounded (monthly or annually).
The calculator automatically updates as you change values, showing you real-time results and an interactive chart of your investment growth over time.