Compound Interest Calculator

Compound interest grows faster than simple interest because each period's interest is added to the principal before the next period's interest is calculated. This calculator computes the final amount and interest earned for any principal, rate, time period and compounding frequency.

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Principal
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Interest earned
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Final amount

How to Use This Tool

  1. Enter the principal amount.
  2. Enter the annual interest rate.
  3. Enter the time period in years.
  4. Choose how often interest compounds — more frequent compounding gives a (usually small) boost to the final amount.

Formula

A = P × (1 + r/n)^(n × t) Where A is the final amount, P is the principal, r is the annual interest rate (as a decimal), n is the number of compounding periods per year, and t is the time in years.

Example: 100,000 at 8% annual interest, compounded annually for 5 years, grows to approximately 146,933 — about 46,933 in interest.

Why Use ToolVigo's Compound Interest Calculator

  • Supports five compounding frequencies: annual, semi-annual, quarterly, monthly and daily.
  • Shows principal, interest earned and final amount separately.
  • Live recalculation as you adjust any field.

Privacy & Security

This tool runs entirely in your browser. Nothing you enter is uploaded to ToolVigo's servers or stored anywhere.

This calculator provides an estimate for informational purposes only and is not financial advice. Actual returns, interest rates and scheme rules can change and may differ from this estimate. Confirm current rates and rules with the official scheme provider or a licensed financial advisor before making decisions.

Frequently Asked Questions

Why does compounding frequency matter?

More frequent compounding means interest starts earning its own interest sooner, which produces a slightly higher final amount for the same nominal annual rate — the effect is usually modest for typical rates and periods, but grows with higher rates and longer periods.

What is the difference between compound and simple interest?

Simple interest is calculated only on the original principal for the whole period. Compound interest is recalculated on the growing balance (principal plus previously earned interest) at each compounding period, which is why it grows faster over time.

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