Compound Interest Calculator

What Makes Interest “Compound”

With compound interest, the interest you earn gets added back to your balance - and then that interest earns interest too. It is a snowball: each year your money grows by a little more than the year before, because there is more of it working for you.

That is what the chart under the calculator shows. The blue part (the money you started with) stays the same height, while the green interest stacks higher and higher each year. Compounding more often - monthly instead of yearly - adds interest more frequently, so the final amount creeps up a little.

Compound Interest Formula

Compound interest grows by adding interest back into the balance:

$$A = P \left(1 + \frac{r}{n}\right)^{nt}$$

P is principal, r is annual rate as a decimal, n is compounds per year, and t is time in years.

Worked Example

If 5,000 earns 6% interest for 5 years, compounded monthly:

1. P = 5,000.
2. r = 0.06.
3. n = 12.
4. t = 5.

The final amount is about 6,744.25, so the compound interest is about 1,744.25.

Compounding Frequency

More frequent compounding usually increases the final amount slightly because interest is added more often.

Frequency	Compounds per year
Yearly	1
Quarterly	4
Monthly	12
Daily	365

FAQ

Does this include monthly deposits?

No. This version estimates compound growth for one starting principal.

Is the result guaranteed?

No. It is a math estimate based on the numbers entered.