Compound Interest Calculator
See how your investments can grow with the power of compound interest
Understanding Compound Interest
What is Compound Interest?
Compound interest is interest earned on both your initial principal and previously accumulated interest. It's often called "interest on interest" and can significantly accelerate wealth building over time.
Compounding Frequency
- Daily: Interest is calculated and added 365 times per year
- Monthly: Interest compounds 12 times per year
- Quarterly: Interest compounds 4 times per year
- Semi-annually: Interest compounds twice per year
- Annually: Interest compounds once per year
Key Factors
- Initial principal amount
- Interest rate
- Investment time period
- Compounding frequency
- Regular contributions
Tips for Maximum Growth
- Start investing early to maximize time in the market
- Make regular contributions to accelerate growth
- Reinvest dividends and interest earnings
- Consider higher-frequency compounding options
- Stay invested for the long term