What is the difference between Simple and Compound interest?

Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal PLUS the accumulated interest from previous periods.

How often should I compound?

Generally, more frequent compounding (e.g., monthly vs annually) results in higher returns, but the difference is small for short durations. Banks typically compound savings accounts monthly or daily.

Compound Interest Calculator

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Calculate how your investments grow over time with compound interest. Compare annual, monthly, or daily compounding and see the power of long-term savings.

How to Use This Compound Interest Calculator

1Enter your Initial Investment (Principal)
2Set the Interest Rate (%)
3Choose the Investment Duration (Years)
4Select Compounding Frequency (Annually, Monthly, etc.)
5Add optional Monthly Contributions
6View the Future Value and Total Earnings

Features

✓Visualize growth with interactive charts
✓Support for Regular Monthly Contributions
✓Flexible compounding frequencies
✓Detailed yearly breakdown table
✓Inflation adjustment estimation
✓Comparison with simple interest

The Power of Compound Interest

Compound interest is often called the 'eighth wonder of the world'. It is the interest you earn on interest. Over time, this leads to exponential growth, meaning your money grows faster the longer you leave it invested.

Frequently Asked Questions

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