Compound Interest Calculator
Principal Amount ($)
Annual Interest Rate (%)
Investment Duration (Years)
Times Compounded Per Year
Results
Future Value:
$0.00
Total Interest Earned:
$0.00
Understanding Compound Interest
Compound interest allows your investment to grow faster than simple interest because it earns interest on both the initial amount and the accumulated interest from previous periods.
- Formula: \( A = P \times (1 + \frac{r}{n})^{nt} \)
- P = Principal amount (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times interest is compounded per year
- t = Number of years
For example, investing $10,000 at 5% annual interest compounded quarterly for 10 years will grow to approximately $16,470.