Compound Interest Calculator
See how your money grows over time
Enter Your Details
Future Value
$260,464
Total Interest
$130,464
Total Deposits
$130,000
Interest Earned
100%
Growth Over Time
Compound vs Simple Interest
Simple Interest
$150,000
Compound Interest
$260,464
You earn $110,464 more with compound interest!
What is Compound Interest?
Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It's often called "interest on interest" and makes your money grow faster than simple interest.
Where: A = Final amount, P = Principal, r = Annual interest rate, n = Compounds per year, t = Time in years
Frequently Asked Questions
How often should interest compound?
More frequent compounding leads to higher returns. Daily compounding earns slightly more than monthly, but the difference is minimal for most investments.
What's a realistic interest rate?
Savings accounts: 0.5-5%. Stock market average (S&P 500): 7-10% annually. High-yield bonds: 5-8%. Always consider inflation (2-3%).
Why start investing early?
Due to compound interest, starting 10 years earlier can double your final amount. Time is your biggest asset in wealth building.