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See how your investments grow over time with the power of compound interest.
Compound interest is interest earned on both your principal AND the accumulated interest from previous periods. Unlike simple interest, compounding accelerates your growth over time — this is what Einstein allegedly called "the eighth wonder of the world."
Formula: A = P × (1 + r/n)^(nt) — where P is principal, r is annual rate, n is compounds per year, and t is time in years.
A compound interest calculator shows how your money grows over time when interest earns interest on itself, rather than just being added flat each year. Enter your starting amount, interest rate, time period, and how often it compounds, and you'll see exactly how much your investment could be worth down the line. It's a favorite among people planning savings goals, retirement funds, or just trying to understand why 'compounding' gets talked about so much in investing.
The idea that money can grow exponentially rather than linearly is hard to picture without seeing actual numbers. This tool exists to make that visible — showing how a $10,000 investment at 8% for 20 years ends up dramatically different depending on whether it compounds annually, monthly, or daily.
The formula used is A = P(1 + r/n)^(nt), where P is your principal, r is the annual rate, n is how many times it compounds per year, and t is the number of years. For $10,000 at 8% compounded monthly over 20 years, the final balance comes out to roughly $49,268 — nearly five times the original amount, purely from letting interest build on itself over time.
Simple interest is calculated only on the original principal, while compound interest is calculated on the principal plus any interest already earned, which accelerates growth over time.
Yes, more frequent compounding (daily vs annually) results in slightly higher returns, though the difference becomes more noticeable over longer time periods.
This tool is built for growth scenarios like savings and investments; for loan repayment, our loan or EMI calculator is a better fit.
A lot — thanks to compounding, money invested 10 years earlier can end up worth significantly more than the same amount invested later, even at the same rate.
Not quite — this assumes a single lump sum investment, while our SIP calculator is built for regular monthly contributions.
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