Compound Interest Calculator

Calculate your investment growth with our comprehensive compound interest calculator. See how your money can grow over time with the power of compounding.

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What Is Compound Interest?

Compound interest is the process by which an investment grows over time as interest earns interest. Unlike simple interest, which is calculated only on the initial amount, compound interest factors in previous interest payments.

The more frequently interest is compounded — monthly, quarterly, or yearly — the faster your money can grow. This powerful effect is why compound interest is often called "the eighth wonder of the world."

Use our calculators above to see how even small, regular contributions can add up significantly over time.

Simple Interest

Interest calculated only on the original amount

Year 1:$1,000 + $70 = $1,070
Year 2:$1,070 + $70 = $1,140
Year 3:$1,140 + $70 = $1,210
Total after 3 years:$1,210

Compound Interest

Interest calculated on principal + previous interest

Year 1:$1,000 + $70 = $1,070
Year 2:$1,070 + $74.90 = $1,144.90
Year 3:$1,144.90 + $80.14 = $1,225.04
Total after 3 years:$1,225.04

$15.04 more than simple interest!

Why Compound Interest Matters

Exponential Growth

Your money grows faster over time as interest compounds

Time Advantage

Starting early gives you more time for compounding to work

Passive Income

Your money works for you, earning returns on returns