Compound Interest Calculator
Simulate how your deposits accumulate compound interest over time. Learn how compounding frequencies (monthly, quarterly, annually) boost your final savings.
Future Investment Projections
Initial Investment:
$0.00
Total Deposits (Contributions):
$0.00
Total Interest Earned:
$0.00
Future Maturity Value:
$0.00
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| Year | Annual Deposit | Total Deposits | Interest Earned | Total Interest | Future Value |
|---|---|---|---|---|---|
| Please click 'Calculate Growth' to generate table. | |||||
Compound Interest Calculation Guide
Compound interest is the interest calculated on the initial principal and also on the accumulated interest over previous periods. The formula for compound interest is: A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
Frequently Asked Questions (FAQ)
Q: What is the difference between simple and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest. Compound interest grows faster over time.
Q: How does compounding frequency affect growth?
A: More frequent compounding (e.g., monthly vs. annually) results in higher returns because interest is added to the principal more often, allowing each subsequent calculation to earn interest on a larger base.