Finance Calculators
Compound Interest Calculator
Calculate the future value of an investment using the power of compound interest.
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Summary
Principal Amount:$1000.00
Interest Earned:+$102.50
Future Value:$1102.50
Compound Interest Formula
A = P(1 + r/n)nt
Where P = Principal, r = Annual rate, n = Compounding frequency, t = Years.
These calculators are for general informational use only and are not financial, tax, or legal advice.
Frequently Asked Questions
What is compound interest?
Compound interest is the addition of interest to the principal sum of a loan or deposit. It is essentially 'interest on interest'.
Why does compounding frequency matter?
The more frequently interest is compounded (e.g., daily vs. annually), the higher the effective yield, resulting in faster growth.
What is the Rule of 72?
The Rule of 72 is a quick mental math shortcut: divide 72 by your annual interest rate to estimate how many years it will take to double your money.