See how your money multiplies with the power of compounding.
Compound interest is often called the eighth wonder of the world — your money earns interest, and that interest itself starts earning interest. Over long periods, this snowball effect can turn modest savings into substantial wealth.
This free compound interest calculator lets you choose yearly, half-yearly, quarterly, or monthly compounding and instantly shows your interest earned and final value. Use it to compare fixed deposits, recurring deposits, bonds, or any compounding investment.
A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual rate, n is the number of compounding periods per year, and t is the time in years.
The more often interest compounds, the faster your money grows. Monthly compounding yields slightly more than yearly compounding at the same rate.
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus all previously earned interest.