Compound Interest Calculator
Estimate balance growth when interest compounds over time.
About This Calculator
Compound interest means interest is added to the balance, and future interest is then calculated on the larger amount. This is common in savings accounts, investments, and some loans.
Formula: A = P(1 + r / n)^(nt), where P is principal, r is the annual rate, n is the number of compounding periods each year, and t is time in years.
Example: A deposit of 10,000 at 6% compounded monthly for 10 years grows to about 18,194. The interest earned is about 8,194.
Even small differences in rate and time can change the result in a noticeable way. That is why compound growth is important in long-term savings and investing.
How To Read The Result
The final balance shows the total value at the end of the time period. The interest earned shows how much growth came from the compounding process rather than from the starting deposit itself.
If you want to compare two options, keep the principal and years the same and then change the rate or compounding frequency. This gives a clearer side-by-side estimate.
Related Calculators And References
For non-compounding estimates, try the Simple Interest Calculator. If your goal is saving toward a target amount, the Savings Goal Calculator can help you work backward from the amount you want.
For matching background information, review the Investor.gov compound interest definition and the Investor.gov compound interest calculator.