Compound Interest Calculator
Calculate compound interest on your savings and investments
Disclaimer: This calculator assumes a constant interest rate over the entire period and does not account for taxes, inflation, fees, or market volatility. Actual investment returns vary and past performance does not guarantee future results. This tool is for informational and educational purposes only and does not constitute investment or financial advice.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It makes your money grow faster over time compared to simple interest, which is only calculated on the principal.
How often should interest compound?
The more frequently interest compounds, the more you earn. Common compounding frequencies are daily, monthly, quarterly, and annually. Daily compounding earns slightly more than monthly, which earns more than annually.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by your annual interest rate. For example, at 8% interest, your money doubles in approximately 72/8 = 9 years.