Compound Interest Calculator
Calculate compound interest with customizable principal, rate, and compounding frequency
Input
$
%
Total Amount
$16288.95
Interest Earned
$6288.95
Annual Return
5%
Formula
Total = Principal × (1 + Rate ÷ N)^(N × Years)
FAQ
What is compound interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods — 'interest on interest'.
How does compounding frequency affect returns?
Higher compounding frequency yields greater returns. Daily compounding earns more than monthly, which earns more than yearly.
What's the difference between compound and simple interest?
Simple interest only applies to the principal, while compound interest applies to both principal and accumulated interest. Over time, compound interest yields significantly more.