Compound Interest Growth Calculator
Compound interest grows your money by applying interest on both the original principal and the accumulated interest from previous periods. Enter your starting balance, nominal annual rate, compounding frequency, and time horizon to see the future value of a single deposit.
Educational illustration only—consult a licensed advisor for personalised investment planning.
Examples
- $1,000 at 5% compounded quarterly for 10 years ⇒ $1,643.62
- $5,000 at 7% compounded monthly for 5 years ⇒ $7,129.86
- $12,500 at 4% compounded annually for 15 years ⇒ $22,494.26
FAQ
What is compound interest?
Compound interest adds earned interest back to the principal so each period's growth is calculated on an ever larger balance.
How do I choose the right compounding frequency?
Match the frequency used by your financial product—for example 12 for monthly bank interest, 2 for semiannual bonds, or 365 for daily compounding.
What happens if the rate or years is zero?
If the rate is zero, the balance never grows; if the years value is zero, the result simply returns the starting balance.
Can I include regular contributions?
This tool models a single lump sum. For recurring deposits, use a future value of annuity calculator to add payment streams.
Does the calculator use nominal or effective rate?
Enter the nominal annual rate quoted by your bank. The tool converts it to an effective rate automatically based on your compounding frequency.
Additional Information
- Uses the standard future value formula A = P(1 + r/n)^(n·t), where P is principal, r is annual rate, n is compounding frequency, and t is time in years.
- The output is shown in the same currency that you use for the principal field—enter dollars, euros, or any other currency.
- Compounding more frequently (monthly versus annually) leads to slightly higher growth because interest is added to the balance more often.
- Taxes, account fees, additional deposits, and withdrawals are outside the scope of this simplified projection.