Compound Interest Calculator
Calculate compound interest and final amount for any investment.
About Compound Interest Calculator
Calculate the power of compounding on any investment or loan. Enter principal, annual interest rate, compounding frequency (daily/monthly/quarterly/yearly), and time period to see the final amount and total interest earned.
Use Cases
Understanding investment growth over time, comparing compounding frequencies, calculating FD maturity amounts, planning savings goals.
How It Works
Applies the formula A = P × (1 + r/n)^(n×t), where P is principal, r is annual rate, n is compounding frequency per year, and t is time in years.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest earns interest only on principal. Compound interest earns interest on principal plus previously earned interest — making it grow faster.
Which compounding frequency gives higher returns?
More frequent compounding gives slightly higher returns. Daily compounding beats monthly, which beats yearly.