Compound Interest Calculator

Finance Tools

Calculate future investment value with compound interest. Analyze growth for savings accounts, investments, and retirement planning with visual charts.

How to Use Compound Interest Calculator

Enter your initial investment amount. Input the annual interest rate (%). Specify the investment time period in years. Choose the compounding frequency (daily, monthly, quarterly, semi-annually, annually). Add regular contributions if applicable (optional). Click "Calculate" to view your investment growth results with a detailed breakdown table and growth chart.

Frequently Asked Questions

How does compound interest differ from simple interest?

Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and the accumulated interest, creating an exponential growth effect over time.

How does compounding frequency affect my investment returns?

More frequent compounding periods (daily vs. annually) result in higher returns. For example, at 5% interest on $10,000, annual compounding yields $12,763 after 5 years, while daily compounding yields $12,840.

What is the Rule of 72 for investment doubling?

The Rule of 72 approximates how long it takes for an investment to double: divide 72 by the annual interest rate. For example, at 8% interest, your investment doubles in approximately 9 years (72 ÷ 8 = 9).