Compound Interest Calculator

The best compound interest calculator to determine how much your money can grow with compound interest.

Total Deposits
Total Interest
Total Balance

Effective Interest Rate: (annual)


If you start with $10,000 in a savings account earning a 7% interest rate, compounded annually, and make $100 deposits on a monthly basis, after 20 years your savings account will have grown to $89,737.45 - of which $34,000 is the total of your beginning balance plus deposits, and $55,737.45 are the total interest earnings.

Compounding Interest - Investment Analysis

YearStart PrincipalDepositsYearly InterestTotal InterestBalance

Compounding Interval Comparison

Compound IntervalTotal AmountInterest
Annually (1)$89,737.45$55,737.45
Semi-Annually (2)$91,353.56$57,353.56
Quarterly (4)$92,202.19$58,202.19
Bi-Monthly (6)$92,491.42$58,491.42
Monthly (12)$92,783.93$58,783.93
Semi-Monthly (24)$92,931.43$58,931.43
Bi-Weekly (26)$92,942.81$58,942.81
Weekly (52)$93,011.2$59,011.2
Daily (365)$93,069.99$59,069.99

Investing is an essential skill and strategy to save for the future. Nowadays, most people invest because of the guaranteed future that they want for their family and their own selves. In these uncertain times, investing can be your saving grace. If something unexpected and unplanned is about to happen, investing can at least save us tons of worry and stress. We may never know what and how the future will look like but investing in it can give us the guarantee of a secured future. At least, a future that we can look forward to.

Let us examine and take a look at the nature of investing. With this, let us check how compound interest works.

What is compound interest?

Compound interest is also known as “interest on interest”. This means that compound interest refers to the principal amount of money or savings that you have that exponentially grows over time. Basically, compound interest is the interest grown from your initial and principal amount that is doubled over time.

Oftentimes, we invest in education and retirement plans for our family members and even our own selves. Here, compound interest works by having your returning investments added to your principal amount. In simpler terms, your interest earnings are doubled which allows your savings to grow and increase over time.

But, when you have debts left unpaid, compound interest can totally work against you and your savings. The amount that you have borrowed increases, as well as the interest rate, which is added to the debt you still need to pay.

Compound interest can be your best friend or your worst enemy. It is important that you understand how it works to your benefit. We want to save money and grow that amount over time. We don’t want those savings of yours to topple at a moment’s notice.’

Difference Between Simple and Compound Interest

Simple interest is the amount of interest gained from your initial amount. In simpler terms, simple interest allows your money to increase but not to be reinvested. For example, if you have $100 in your bank account, and the annual interest rate is $10, then after one year, your total amount is $110. Your principal amount which is $100 is added by $10 as your annual interest rate. This is how simple interest works.

Compound interest works differently. As the example given before, your $10 as your annual interest rate is reinvested. Your $10 is put at work in here. This means that compound interest adds an interest within your interest. Simply, your interest amount is doubled and reinvested, unlike the simple interest.

How to Use Compound Interest Calculator

Our compound interest calculator works by helping you identify how much money you save, how the compound interest increases your savings, and also the difference between saving early rather than saving for a later time.

This is the information you need to understand before using a compound interest calculator:

  • Initial Principle – money that you plan to initially invest or save
  • Regular Deposit – money that you plan to add to your initial amount
  • Rate (%) – refers to your approximate interest rate annually
  • Years – period of time when you plan to invest
  • Compound Frequency – refers to how your interest will be compounded

Compounding Periods:

  • Daily/Regular Compounding
  • Bi-weekly/Weekly Compounding
  • Monthly/Semi-Monthly Compounding
  • Quarterly Compounding
  • Yearly Compounding
  • Tax (%) Optional – an amount that is subtracted yearly from your overall earnings

Following are easy steps to calculate compound interest using our compound interest calculator:

Step 1: Enter Initial Principle and Regular deposit and frequency.

Step 2: Select rate of interest, number of years and compound frequency.

Step 3: Tax and Inflation are optional fields, if you need simply enter values.

Step 4: It will instantly display total deposit, total compound interest and total balance.

Step 5: Also check compound interest calculation data in interactive graph and table.

Compound Interest Formula

There are different compound interest formulas depending on the nature of your savings and investments.

Simple Compound Interest Formula

With initial deposit:

A = P * (1 r/n)

Total Compound Interest Generated:

I = P * (1 r/n) – P

Regular Deposits on Compound Interest Formula

Initial Equation:

A = P * (1 r/n)

End of Period Formula:

A = PMT * ( ( (1 r/n) – 1) / ( r/n) )

Different Period Payments on Compound Interest Formula

Initial Equation:

A = P * (1 r/n)

End of Period Formula:

A = PMT * pf * ( ( ( 1 r/n) – 1) / ( r/n) )


  • A = amount of investment and interest
  • P = amount of initial deposit
  • r = decimal rate of interest annually
  • t = period of time the money is invested
  • n = frequency of compounding interest
  • I = total amount of compound interest
  • PMT = payment/deposit monthly
  • pf = frequency of payment with compound interest

What is the Rule of 72?

This rule refers to the period of time that a certain amount of money grows or doubles over time. It is essential to also determine the fixed rate that the amount of money is returned after that money is already compounded. All you need to do is to divide 72 with the rate of the return money or investment. The result will show you the period of time or years that it will take your investment or money to grow or double through time.

Compound Interest Calculator FAQs

What is compounding interest?

This is also termed as the interest within an interest. In simpler words, the amount of money you have invested will be doubled after each compounding frequency. Unlike a simple compound interest, compounding interest gains interest on your interest rate.

What are the compounding frequencies?

It depends on the bank or financial investment companies that you have entrusted your investment too. Some banks have daily, monthly, quarterly, and annually compounding interest rates. Compounding frequencies are dependent on the bank and the investment industry.

When did an interest is being compounded?

Generally, your savings accounts are compounded either at the start or the end of a month or a year. This completely depends on the bank’s compounding period. The time or period that your interest is being compounded will totally affect your investment in general.

What is the best rate for an interest?

If within a year your savings are compounded a lot of times, then your savings’ worth is totally higher. If your interest rate is paid after compounding, then that is your best and effective option for an interest rate. Compounding interest will completely gain interest within the interest of your savings.

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