Compound Interest Calculator
Calculate compound interest and see how your money grows over time with different compounding frequencies.
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How to Calculate
A = P × (1 + r/n)^(n×t)
Where P = principal amount, r = annual interest rate (decimal), n = number of times interest is compounded per year, t = number of years.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This "interest on interest" effect causes your money to grow exponentially over time.
How does compounding frequency affect returns?
More frequent compounding (daily vs. monthly vs. annually) results in slightly higher returns. For example, $10,000 at 5% compounded daily yields more than at 5% compounded annually.
What is the Rule of 72?
The Rule of 72 estimates how long it takes to double your money: divide 72 by the annual interest rate. For example, at 6% interest, your money doubles in approximately 72÷6 = 12 years.
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