Compound Interest Calculator
Calculate how your investments grow with compound interest over time
Enter your investment details and click "Calculate Growth" to see your results
Here's the thing about compound interest - it's basically money making money, and then that money making even more money. Einstein supposedly called it the eighth wonder of the world, and honestly? He wasn't wrong.
The math behind it looks like this:
Before you panic, let me break this down into normal human terms:
- A = What you'll end up with (the fun number!)
- P = What you're starting with (your initial investment)
- r = Your interest rate as a decimal (so 5% becomes 0.05)
- n = How often they calculate and add your interest each year
- t = How many years you're letting this magic happen
How Often Does Your Money Grow?
This is where it gets interesting. The more frequently your interest compounds, the more money you make:
- Once a year (Annually): They calculate interest once and add it at year-end
- Twice a year (Semi-annually): Interest gets calculated and added every 6 months
- Four times a year (Quarterly): Every 3 months, your money gets a little boost
- Monthly: Every single month, you're earning interest on your interest
- Daily: This is where compound interest really starts flexing - your money grows every single day
The difference might seem small at first, but over time? It's the difference between driving a Honda and driving a Tesla. Daily compounding can add thousands to your final amount compared to annual compounding, especially over longer periods.