Compound Interest Calculator

Calculate compound interest and see how your investments grow over time with detailed analysis and breakdowns.

Compound Interest Calculator

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How Compound Interest Works

Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods.

1

Initial Investment

Start with your principal amount - the initial money you invest.

2

Interest Compounds

Interest is earned not just on your principal, but also on previously earned interest.

3

Growth Accelerates

Over time, the compounding effect accelerates your wealth growth exponentially.

Tips & Best Practices

Quick Tip

The more frequently interest compounds, the more you earn. Daily compounding typically yields the highest returns.

Best Practices

  • Start investing early to maximize the power of compounding
  • Make regular contributions to accelerate growth
  • Choose investments with higher compounding frequencies when possible
  • Be patient - compound interest works best over long time periods