Compound Interest Calculator
Visualize the compound growth of your deposits. Adjust principal inputs, annual rates, tenure, and choose compounding frequency to compute total interest earned in real-time.
Parameters
Results Summary
This calculator determines the results based on the following standard financial formula for Compounding Interest:
Variables Glossary
- A
- Maturity value (Principal + Interest)
- P
- Principal investment amount
- r
- Annual nominal interest rate (decimal)
- n
- Compounding frequency per year (e.g. 12 for monthly)
- t
- Tenure in years
The principal is multiplied by the compound factor representing the rate divided by frequency, raised to the power of frequency times tenure.
What is compound interest?
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods, effectively 'interest on interest'.
How does compounding frequency affect my returns?
The more frequently interest is compounded, the higher the returns. For example, monthly compounding yields a slightly higher maturity amount than quarterly or annual compounding at the same interest rate.