What is compound interest?

It is interest calculated on both the original principal and the interest already added, so the balance grows faster over time than with simple interest.

Does compounding frequency matter?

Yes. For the same annual rate, more frequent compounding produces slightly more interest because interest is added to the balance sooner.

How is this different from simple interest?

Simple interest is charged only on the original principal, while compound interest is charged on the growing balance.

Finance Calculators

Compound Interest Calculator

Calculate future value and total compound interest with flexible compounding.

Free foreverRuns in your browserNo sign-up

PrincipalCurrencyAnnual interest rate (%)Compounding frequency

TimeUnit

Future value

$14,898.46

$4,898.46

Total interest

$14,898.46

Future value

Compound interest uses A = P(1 + r/n)^(nt), where n is the number of compounding periods per year. More frequent compounding produces slightly more interest for the same rate.

About the Compound Interest Calculator

The Compound Interest Calculator finds how much a principal grows when interest is added back to the balance and itself earns interest over time.

It uses A = P(1 + r/n)^(nt), where n is the number of compounding periods per year. You can compound annually, semi-annually, quarterly, monthly or daily.

Alongside the future value it shows the total interest earned. More frequent compounding produces a slightly larger balance for the same annual rate, and all maths runs in your browser.

Key features

Future value and total interest
Annual to daily compounding
Time in years or months
Locale-aware currency formatting

How to use

1Enter the principal and choose a currency.
2Enter the annual interest rate.
3Choose the compounding frequency.
4Enter the time and read the future value and interest.

Frequently asked questions

What is compound interest?: It is interest calculated on both the original principal and the interest already added, so the balance grows faster over time than with simple interest.
Does compounding frequency matter?: Yes. For the same annual rate, more frequent compounding produces slightly more interest because interest is added to the balance sooner.
How is this different from simple interest?: Simple interest is charged only on the original principal, while compound interest is charged on the growing balance.