Compound Interest Calculation

Compound interest is often described by Albert Einstein as the "eighth wonder of the world." Unlike simple interest, compound interest is calculated not only on the initial principal but also on the accumulated interest from previous periods. It's a snowball effect for your money.

Our calculator allows you to visualize this powerful effect. Enter the initial principal, the annual interest rate, the investment duration, and, most importantly, the frequency at which the interest is compounded (annually, monthly, daily...). You will see not only the final amount but also the total interest earned.

Concrete Example:

Imagine you invest $1,000 at a rate of 10% per year.

• With simple interest, after 3 years, you would have $1,300.
• With interest compounded annually, you would have $1,331. The difference may seem small, but over the long term, it becomes exponential.

Use this tool to plan your savings, your investments, or simply to understand one of the most fundamental concepts of personal finance.