Compound Interest Calculator
Estimate compound interest and final amount with different compounding frequencies.
Compound Interest Calculator
Final amount: 6,744.25 Compound interest: 1,744.25
Compound Interest Formula
Compound interest grows by adding interest back into the balance:
A = P x (1 + r / n)^(n x t)P is principal, r is annual rate as a decimal, n is compounds per year, and t is time in years.
Worked Example
If 5,000 earns 6% interest for 5 years, compounded monthly:
- P = 5,000.
- r = 0.06.
- n = 12.
- t = 5.
The final amount is about 6,744.25, so the compound interest is about 1,744.25.
Compounding Frequency
More frequent compounding usually increases the final amount slightly because interest is added more often.
| Frequency | Compounds per year |
|---|---|
| Yearly | 1 |
| Quarterly | 4 |
| Monthly | 12 |
| Daily | 365 |
FAQ
Does this include monthly deposits?
No. This version estimates compound growth for one starting principal.
Is the result guaranteed?
No. It is a math estimate based on the numbers entered.