Calculate the future value of an investment using compound interest. This tool helps you estimate how your money grows over time with different interest rates and compounding frequencies.

Compound Interest Calculator

Calculate the future value of an investment with compound interest. Enter the initial principal, annual interest rate, number of years, and choose a compounding frequency.

Formula: A = P × (1 + r/n)^(n × t)

How to Use the Compound Interest Calculator

  1. Enter the initial investment amount in the “Principal Amount” field.
  2. Enter the annual interest rate (as a percentage) in the “Annual Interest Rate” field.
  3. Enter the number of years you plan to keep the investment in the “Number of Years” field.
  4. Select the compounding frequency from the dropdown menu:
    • Annually (once per year)
    • Semiannually (twice per year)
    • Quarterly (four times per year)
    • Monthly (twelve times per year)
    • Daily (365 times per year)
  5. Click the “Calculate” button to see the future value of your investment.
  6. To copy the result, click the “Copy Result” button.
  7. To reset all fields and start a new calculation, click “Clear All.”

How Compound Interest Works

Compound interest is the process of earning interest on both the initial principal and the accumulated interest from previous periods. The formula used in this calculator is:

A = P × (1 + r/n)^(n × t)

Where:

  • A = Future Value of the investment
  • P = Principal (initial investment amount)
  • r = Annual interest rate (decimal form)
  • n = Number of times interest is compounded per year
  • t = Number of years

For example, if you invest $1,000 at an annual interest rate of 5% compounded monthly for 10 years, the calculation will be:

A = 1000 × (1 + 0.05/12)^(12×10) = $1,647.01

Piggy bank

Real-World Examples

Here are some practical examples of how compound interest works in different scenarios:

  • Saving for Retirement: If you invest $5,000 annually at 7% interest, compounded monthly, for 30 years, the final amount will be $612,951.34.
  • College Fund: Investing $10,000 at 4% interest, compounded annually, for 18 years will grow to $20,219.48.
  • Buying a House: A down payment of $20,000 invested at 6% interest, compounded quarterly, for 5 years will grow to $26,936.37.
  • Investment Growth: A $1,000 investment at 8% interest, compounded daily, for 20 years will grow to $4,924.45.
  • Loan Interest: A credit card balance of $2,500 with a 19% annual interest rate, compounded monthly, for 2 years will accumulate to $3,599.92.
  • Wealth Accumulation: Starting with $100,000 at 5% interest, compounded semiannually, for 40 years results in $704,000.68.
  • Stock Market Returns: Investing $50,000 in a stock index fund with an average return of 10%, compounded annually, for 25 years will grow to $541,735.28.
  • Business Growth: A business reinvesting $25,000 annually at 12% interest, compounded monthly, for 15 years will grow to $1,299,918.15.
  • Emergency Fund: A $3,000 emergency fund growing at 3% interest, compounded quarterly, for 10 years will be worth $4,041.79.
  • Child Savings Account: A $500 deposit at 2.5% interest, compounded annually, for 20 years will grow to $819.71.

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How are you using this compound interest calculator? Do you need additional features, such as inflation adjustments or contribution tracking? Let us know in the comments!