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Compound interest calculator
See how a deposit grows with compound interest, with yearly, quarterly, monthly or daily compounding.
| Year | Interest | Balance |
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What is the compound interest calculator used for?
Compound interest is interest earned on both the original deposit and the interest already added. It is how fixed deposits, recurring deposits, savings accounts and many investments grow over time. The more often interest is added (compounded), the faster the balance grows.
Enter the principal, the yearly rate, the number of years and how often interest is compounded. The calculator shows the final amount, the total interest, the effective yearly rate and a year-by-year balance table.
Why use this one
You can switch the compounding frequency to see exactly how much it matters, and the effective yearly rate shows the true growth after compounding. It runs in your browser with no sign-up, and results update as you type.
Frequently asked questions
What is the compound interest formula?
A = P × (1 + r ÷ n)^(n × t), where P is the principal, r is the yearly rate as a decimal, n is the number of times interest is compounded per year and t is the number of years. Compound interest is A − P.
What is the difference between simple and compound interest?
Simple interest is calculated on the original principal only. Compound interest is calculated on the principal plus the interest already earned, so it grows faster over longer periods.
Does compounding more often always give more?
Yes, for the same yearly rate, but the gain from monthly to daily compounding is small. The biggest difference is between yearly and quarterly compounding.
What is the effective yearly rate?
It is the single yearly rate that would give the same result as the chosen compounding. For 7% compounded quarterly it is about 7.19%.
Will my bank deposit match this exactly?
It will be close. Banks follow their own compounding rules, day counts and tax deductions, so check the terms of your deposit.