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Compound Interest Calculator

Calculate the future value of an investment with compound interest.

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Inputs

$
%
Years

Your values stay on this device.

Results

Future Value
Total Interest Earned$5,048.31

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Assumptions

  • Calculated locally from the inputs shown in this report.

Sensitivity preview

Principal Amount -10%: Future Value $9,043.48

Principal Amount Current: Future Value $10,048.31

Principal Amount +10%: Future Value $11,053.14

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About this Compound Interest

Compound interest is the cycle of earning interest on your interest. Over long periods, it creates exponential growth, turning small regular deposits into massive wealth. This calculator lets you adjust the frequency (Daily, Monthly, Annually) to see the impact.

How to use this calculator

  1. Enter your Principal Amount (Starting balance).
  2. Input the Annual Interest Rate.
  3. Select the Time Period in years.
  4. Choose the Compounding Frequency (Monthly is standard for savings accounts).

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

Formula: A = P(1 + r/n)^(nt) * P: Principal * r: Annual Rate (decimal) * n: Times compounded per year * t: Years The more frequent the compounding, the higher the return.

Inputs explained

Principal

The initial lump sum you deposit.

Compounding Frequency

How often interest is added to the balance. Daily compounding yields more than annual compounding.

Annual Interest Rate

The percentage growth rate per year.

Understanding your results

The Future Value is your final balance. Total Interest is the profit generated. Compare this to Simple Interest to see the 'Compound Effect'.

Example scenarios

Monthly Compounding

$10,000 at 5% for 10 years (Monthly) = $16,470.

Annual Compounding

$10,000 at 5% for 10 years (Annual) = $16,288. The monthly option earns ~$182 more due to faster compounding.

Key Features

  • Flexible Compounding Frequency
  • Total Interest Breakdown
  • Exponential Growth Logic

Things to Keep in Mind

This version calculates a lump sum growth. For regular monthly contributions, use the Investment Calculator.

Tips & Best Practices

  • Time is your best friend. Starting 10 years earlier can double or triple your final result.
  • High-Yield Savings Accounts usually compound daily or monthly.
  • The 'Rule of 72' lets you estimate doubling time: 72 / Rate = Years to Double (e.g., 72 / 8% = 9 years).

Glossary of Terms

Principal
The original sum of money invested.
APY
Annual Percentage Yield. The effective annual rate taking compounding into account.
Accrued Interest
Interest that has been earned but not yet paid out.

Frequently Asked Questions

Does simple interest exist in savings accounts?
Rarely. Almost all modern bank accounts use compound interest, which is better for the saver.
What is continuous compounding?
The theoretical limit where compounding happens every instant. Formula: A = Pe^(rt).