Compound interest earns interest on your interest. $1,000 at 5% compounded annually for 10 years grows to about $1,629 — more than simple interest because growth compounds.
Compound interest earns interest on your interest. $1,000 at 5% compounded annually for 10 years grows to about $1,629 — more than simple interest because growth compounds. Our compound interest calculator is built on the same core compound interest formula investment growth calculator compound interest online and is trusted by students, professionals and everyday users who need a fast, accurate result. Because every calculation runs locally in your browser, there is no waiting, no sign-up and no limit on how often you use it.
The Exponential Power of Compounding
Compound interest generates returns on both your initial principal and accumulated interest over time, leading to exponential financial growth.
The Compound Interest Formula
The standard formula is A = P(1 + r/n)^(nt), where A is total balance, P is initial deposit, r is annual interest rate, n is compounding frequency, and t is years invested.
Comparing Compounding Frequencies
Daily and monthly compounding yield higher long-term returns compared to annual compounding because interest is reinvested earlier and more frequently.
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