Compound Interest Calculator
Calculate the future value of your investment with compound interest.
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Compound Interest Formula
FV = P × (1 + r/n)^(n×t)
Where P is the principal, r the annual rate, n the compounding frequency per year, and t the time in years.
Example
$10,000 at 5% compounded monthly for 10 years:
- FV = 10000 × (1 + 0.05/12)^120 ≈ $16,470
- Interest Earned ≈ $6,470
The Power of Compounding
The same investment at simple interest would earn only $5,000. Compounding earns interest on interest — and the effect accelerates with time.
Frequently Asked Questions
FV = P(1 + r/n)^(nt). $10,000 at 5% compounded monthly for 10 years grows to about $16,470.
More frequent compounding earns slightly more: at 5% for 10 years, $10,000 grows to $16,289 annually vs $16,487 daily. The difference is modest but real.
Divide 72 by the annual interest rate to estimate the years needed to double your money. At 6%, money doubles in about 12 years.
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