Compound Interest Calculator
Calculate compound interest with various compounding frequencies
Calculate compound interest with various compounding frequencies
Models the growth of an investment or loan where interest is added to the principal and future interest is earned on that combined amount.
Interest calculators cover compound interest, simple interest, and time-value-of-money concepts. Understanding the difference between nominal and effective rates — and how compounding frequency affects returns — can mean thousands of dollars difference over a savings or investment horizon.
Daily compounding at 5% annual grows money to 5.127% effective rate. Compounding matters more the longer you invest — the difference between annual and daily compounding on a 30-year $10,000 investment is over $1,500.
Using annual rates without adjusting for compounding frequency — "8% annual, compounded monthly" uses r/12 per period, not 8% per period.