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Interest Calculator
Calculate compound interest with various compounding frequencies and see your investment grow over time.
Currency
Investment Details
Initial investment amount
Nominal annual rate
1 years50 years
Compounding Frequency
Common Rates
Understanding Compound Interest
Key Concepts
- Compound Interest: Interest calculated on initial principal and accumulated interest
- Nominal Rate (APR): The stated annual interest rate without compounding
- Effective Rate (APY): The actual annual return accounting for compounding
- Rule of 72: Divide 72 by your interest rate to estimate years to double
Formula
Discrete Compounding:
A = P(1 + r/n)^(nt)
Continuous Compounding:
A = Pe^(rt)
Where: A = Amount, P = Principal, r = Rate, n = Frequency, t = Time
Compounding Frequency Impact
More frequent compounding results in higher effective returns. The difference between annual and continuous compounding grows with higher rates and longer time periods.
Annually
1x/yr
Semi-annually
2x/yr
Quarterly
4x/yr
Monthly
12x/yr
Weekly
52x/yr
Daily
365x/yr
Continuous
cont.