Compound Interest: Interest calculated on the initial principal and also on accumulated interest from previous periods. "Interest on interest."
How Compound Interest Is Calculated
This calculator uses principal, annual interest rate, time in years and compounding frequency to estimate the accumulated amount. The calculation follows A = P(1 + r/n)nt, where P is principal, r is the annual rate as a decimal, n is the number of compounding periods per year and t is time in years.
What You Get
The result shows total amount, original principal, interest earned, selected compounding frequency and an effective annual rate. More frequent compounding can change the final amount for the same nominal annual rate.
Use the Result Carefully
This is a mathematical estimate based on a constant rate. It does not account for taxes, fees, deposits, withdrawals or changing investment returns.