About this compound interest calculator
Compound interest is interest calculated on both the principal and the accumulated interest from previous periods. It is the engine behind long-term wealth creation, because your money earns interest on interest.
Enter the principal, annual rate, time and compounding frequency. The tool computes the total amount and the compound interest. More frequent compounding gives a higher return at the same nominal rate.
The result assumes the rate stays constant and gains are reinvested. Real investments vary, and taxes and fees apply.
Use it to see the power of compounding over long horizons. Compare with simple interest to understand the difference. Start early and stay invested to make compounding work for you.