Compound Interest Calculator

How Compound Interest Works

Compound interest is the interest you earn on your initial investment (the principal) plus the accumulated interest from previous periods. It's often called "interest on interest" and can make a significant difference in how fast your money grows. Our calculator uses the standard formula: A = P(1 + r/n)^(nt), where 'P' is the principal, 'r' is the annual rate, 'n' is the number of times interest is compounded per year, and 't' is the time in years. This tool helps you visualize this powerful financial concept for free online in 2025.

Disclaimer: This calculation is for illustrative purposes only and does not constitute financial advice. The actual returns on any investment can vary.