Compound Interest Calculator
Calculate the power of compounding and see how your investments grow over time
Investment Details
Results
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Final Amount
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Total Interest
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Principal Amount
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Annual Rate
Growth Chart
Visual representation of your investment growth
Year-by-Year Breakdown
| Year | Principal | Interest | Total Amount |
|---|---|---|---|
| Click calculate to see breakdown | |||
Understanding Compound Interest
What is Compound Interest?
Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It’s often called “interest on interest” and is the key to building wealth over time.
The Power of Compounding
Albert Einstein allegedly called compound interest “the eighth wonder of the world.” The longer you invest, the more powerful compounding becomes. Starting early gives your money more time to grow exponentially.
Formula Used
The compound interest formula is:
A = P(1 + r/n)^(nt)
Where:
A = Final amount
P = Principal amount
r = Annual interest rate
n = Number of times interest is compounded per year
t = Time in years
Where:
A = Final amount
P = Principal amount
r = Annual interest rate
n = Number of times interest is compounded per year
t = Time in years
Investment Tips
- Start investing early to maximize compounding
- Invest regularly (SIP) for better returns
- Choose investments with higher compounding frequency
- Stay invested for the long term
- Reinvest your returns for exponential growth