Compound Interest Calculator
Calculate how your money grows with compound interest over time
About Compound Interest
Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It's often called "interest on interest" and can significantly boost your investment returns over time.
Formula
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
- A = Final amount
- P = Principal amount
- r = Annual interest rate (decimal)
- n = Number of times interest compounds per year
- t = Time in years
- PMT = Regular payment amount
Tips for Maximizing Compound Interest
- Start investing early to take advantage of time
- Choose investments with higher compounding frequencies
- Make regular contributions to boost growth
- Reinvest dividends and interest payments
- Be patient and let compound interest work its magic