Compound Interest Calculator

Calculate compound interest with yearly, quarterly, monthly or daily compounding and optional monthly contributions.

%
years
Future value
20,096.61
Total deposited
10,000.00
Interest earned
10,096.61
Effective annual rate
7.229%

Formula

A = P × (1 + r ÷ m)^(m × t), where P is the principal, r the annual rate, m the compounding periods per year and t the years. Monthly contributions are added at the end of each month.

About this calculator

Compound interest pays interest on earlier interest, so the balance grows faster the longer it is left. The effective annual rate shows the true yearly growth after compounding.

Amounts are shown without a currency symbol, so the calculator works for any currency: enter all values in the same one.

Frequently asked questions

How much difference does compounding frequency make?

Less than most people expect. At 7% a year, monthly compounding gives an effective rate of about 7.23% and daily about 7.25%. Time and rate matter far more.

What is the effective annual rate?

It is the yearly rate that includes the effect of compounding: (1 + r ÷ m)^m − 1. It lets you compare accounts that compound at different intervals.

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