Compound Interest Calculator
See how a lump sum grows over time. A = P(1 + r/n)^(nt)
What is a compound interest calculator?
A compound interest calculator shows how a lump sum grows over time when the interest it earns also earns interest. It works out the future value and the total interest earned.
How to use the compound interest calculator
Enter the principal, the annual interest rate, how many times interest is compounded per year and the number of years, then click Calculate. The calculator shows the future value and the interest earned.
Compound interest formula
A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual rate as a decimal, n is how many times interest is compounded per year and t is the number of years.
Example
$1,000 at 5% per year, compounded monthly for 10 years, grows to $1,647.01. The interest earned is $647.01.
Frequently Asked Questions
How much will $1,000 grow to at 5% compounded monthly for 10 years?
It will grow to $1,647.01. Try it on the calculator above.
What is the difference between compound and simple interest?
With simple interest you only earn interest on the principal. With compound interest you also earn interest on the interest already earned, so the balance grows faster.
What does compounded monthly mean?
Compounded monthly means interest is added to the balance 12 times a year, once each month, and the next month’s interest is worked out on the new, larger balance.
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