Finance
Compound Interest Calculator
See how a principal amount grows over time with compound interest, at any compounding frequency.
Maturity value
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Frequently asked questions
What is the compound interest formula?
A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is how many times per year interest compounds, and t is time in years. The result, A, is the total maturity value.
How does compounding frequency affect returns?
More frequent compounding (daily vs. annually) yields slightly higher returns for the same nominal rate, because interest starts earning interest sooner. The difference is usually small but grows with larger principal amounts and longer time periods.
What's the difference between compound interest and simple interest?
Simple interest is calculated only on the original principal every period. Compound interest is calculated on the principal plus all previously earned interest, so it grows faster over time — the longer the time period, the bigger the gap.