Finance
Compound Interest Calculator
Calculate how your investment grows with compound interest over time.
Future Value
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How It Works
Compound interest uses the formula A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times interest compounds per year, and t is the time in years.
Example
Investing $10,000 at 7% compounded monthly for 10 years grows to $20,097.07.
Frequently Asked Questions
What is compound interest?
Interest calculated on both the initial principal and accumulated interest from previous periods, making your money grow faster over time.
How often should interest compound?
More frequent compounding earns slightly more. Daily compounds more than monthly, which compounds more than annually.
What is a good interest rate?
The S&P 500 has historically averaged ~10% annually. High-yield savings accounts currently offer 4β5%.