Compound Interest Calculator
Estimate how much your savings or investment could grow over time with compound interest. Enter your starting amount, interest rate, and time period to calculate your projected future balance and the interest earned.
What is Compound Interest?
Compound interest is interest earned on both your original balance and the interest that has already accumulated. As interest is added to your balance, future interest can be calculated on a larger amount, allowing your money to grow over time. The amount of growth depends on your starting balance, interest rate, compounding frequency, and how long the money remains invested. Compound interest can help savings grow, but actual returns depend on the account or investment and are not always guaranteed.
Any Questions?
What is the difference between compound interest and simple interest?
Simple interest is calculated only on the original principal, while compound interest is calculated on the principal and previously accumulated interest. This means compound interest can produce greater growth over time when the rate and other conditions are the same.
How often does interest compound?
Interest may compound daily, monthly, quarterly, or annually, depending on the account or investment. More frequent compounding can result in a higher balance, assuming the same stated annual interest rate and other conditions.
Does compound interest guarantee that my money will grow?
No. Compound interest describes how interest accumulates, but it does not guarantee a particular return. Savings accounts and CDs may offer stated interest rates, while investment returns can fluctuate and may include losses. Use the rate in the calculator as an estimate based on your assumptions.