Finance Tools / Compound Interest Calculator
Compound Interest Calculator
Calculate compound interest with customizable compounding frequency.
Features
- Multiple compounding frequency options
- Shows interest earned and total amount
- Instant results
- Free, unlimited use
How to Use
Step 1
Enter principal, rate, time, and compounding frequency.
Step 2
Click Calculate.
Step 3
Review interest earned and total amount.
About This Tool
Compound Interest Calculator computes how an investment or loan grows when interest is calculated on both the principal and previously earned interest.
Formula used: A = P(1 + r/n)^(nt), where P = principal, r = annual rate (decimal), n = compounding frequency per year, t = time in years. Interest earned = A - P.
Frequently Asked Questions
What compounding frequency should I choose?
Use whatever your bank or investment states, monthly is common for savings accounts.
Why does more frequent compounding increase returns?
Interest is calculated and added to the principal more often, so future interest is calculated on a larger base.