Compound Interest Calculator

What is a Compound Interest Calculator?

A Compound Interest Calculator is a financial planning tool that calculates how investments grow over time when interest is compounded. Unlike simple interest, compound interest earns returns on both the principal amount and previously earned interest, leading to exponential growth. This calculator helps investors, savers, and financial planners understand the long-term impact of compound interest on savings accounts, investments, loans, and retirement funds. Whether you're planning for retirement, saving for a goal, or comparing investment options, this calculator shows how time and compounding frequency affect your returns. Our free AI tools include related financial calculators to support your financial planning needs.

How to Calculate Compound Interest?

Calculating compound interest is simple:

1. Enter Principal Amount: Input your initial investment or loan principal amount.
2. Set Interest Rate: Specify the annual interest rate as a percentage.
3. Choose Compounding Frequency: Select how often interest compounds (annually, semi-annually, quarterly, monthly, daily).
4. Set Time Period: Enter the number of years or periods for the calculation.
5. View Results: See your final balance, total interest earned, and growth breakdown over time.

This tool is essential for anyone planning investments, comparing savings accounts, understanding loan costs, or wanting to see how compound interest can help their money grow over time.