Compound Interest Calculator
Calculate the future value of an investment or savings balance using compound interest. This is useful for savings goals, investing, retirement planning, and financial forecasting.
Examples: 1 = annually, 4 = quarterly, 12 = monthly, 365 = daily
Formula
Final Amount = Principal * (1 + Rate / Compounds Per Year)^(Compounds Per Year * Years)
Frequently Asked Questions
What is compound interest?
Compound interest means interest is earned not only on the original amount, but also on previously earned interest.
Why does compounding frequency matter?
The more often interest is compounded, the more quickly the balance grows because interest is added more frequently.
What is the difference between simple and compound interest?
Simple interest is calculated only on the original principal, while compound interest grows based on both principal and accumulated interest.