What’s the difference between simple and compound interest?

Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus previously earned interest.

Does compounding more often increase returns?

Generally yes—more frequent compounding can slightly increase the total amount, especially over longer periods.

Does this include additional contributions?

This calculator focuses on compounding growth based on the inputs provided. If you make regular contributions, use an investment calculator that supports contributions.

Compound Interest Calculator

Overview

Calculate compound interest on an investment based on principal, interest rate, time, and compounding frequency.

The Compound Interest Calculator helps you calculate the interest earned on an investment with compound interest. Input your principal amount, interest rate, time period, and compounding frequency to see how your investment grows over time.

How to use

Estimate how your money grows with compound interest.

Enter your starting amount: Add the initial principal you’re investing or saving.
Add the interest rate: Enter the annual interest rate (for example, 5%).
Choose a time period: Set how long the money will be invested (in years).
Select compounding frequency: Choose how often interest is compounded (monthly, quarterly, annually, etc.).

FAQs

What’s the difference between simple and compound interest?: Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus previously earned interest.
Does compounding more often increase returns?: Generally yes—more frequent compounding can slightly increase the total amount, especially over longer periods.
Does this include additional contributions?: This calculator focuses on compounding growth based on the inputs provided. If you make regular contributions, use an investment calculator that supports contributions.