Compound Interest Calculator

Estimate final balance using compound interest with optional periodic contributions.

Result
Final balance
1,283.36
Total contributed
1,000.00
Interest earned
283.36
Yearly projection
YearEnd balanceGain% Increase
Y11,051.1651.165.12%
Y21,104.94104.9410.49%
Y31,161.47161.4716.15%
Y41,220.90220.9022.09%
Y51,283.36283.3628.34%

What is compound interest

Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods.

In other words, it's "interest on interest", allowing your money to grow at an accelerated rate over time.

Difference from simple interest

Unlike simple interest, which is calculated only on the initial principal, compound interest adds earned interest to the principal for future calculations.

This means compound interest grows your balance exponentially, whereas simple interest grows it linearly.

Compound interest formula

The basic formula is: $$A = P\left(1 + \frac{r}{n}\right)^{nt}$$

Where A is the final amount, P is the principal, r is the annual rate, n is the compounding frequency per year, and t is the time in years.

Benefits

The main benefit is the exponential growth of your savings or investments.

The longer you leave your money invested and the more frequent the compounding, the greater the growth.

How to use this calculator

Enter your initial principal, your planned periodic contributions, and the expected annual interest rate.

Adjust the compounding frequency and timeline to see how your investment projects over time. You can toggle between monthly and yearly views.

Illustrative example of benefits
Initial capital1,000.00 €
Periodic contribution50.00 €
Annual interest rate (%)5%
Years5 years
Final balance4,697.83 €
Interest earned697.83 €

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