Compound Interest Calculator
Calculate compound interest and the final amount for any principal, rate, period and compounding frequency.
- Compound interest
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- Effective annual rate
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An estimate only; actual products may compound differently.
What is the Compound Interest Calculator?
This compound interest calculator finds the final amount and the interest earned when interest is added back to the principal. Enter the principal, the yearly rate, the years and how many times a year it compounds, and compare how frequency changes the result.
How it works
The final amount is P x (1 + r / m)^(m x t), where P is the principal, r is the yearly rate as a fraction, m is the number of compounding periods per year and t is the number of years. Interest is the final amount minus P. The effective rate is (1 + r / m)^m minus 1.
How to use it
- Enter the principal amount.
- Type the yearly rate and the number of years.
- Choose how many times a year interest compounds.
- Read the final amount, interest and effective rate.
Compound Interest Calculator — FAQ
What is the difference between simple and compound interest?
Simple interest is charged on the original principal only. Compound interest is also charged on earlier interest, so it grows faster.
Does more frequent compounding help a lot?
It raises the result, but the gain shrinks as frequency increases. Monthly to daily compounding differs only slightly.
Can I use this for loans as well as savings?
Yes, for any amount that compounds, such as a loan with no repayments. Regular instalments need an EMI or SIP calculator.