Compound Interest Calculator
Summary
Shows how an investment grows over time when interest is earned on both the principal and previously accumulated interest.
Example
A $1,000 investment at 5% interest compounded monthly for 5 years grows to $1,283.36 — earning $283.36 in interest.
Explanation of Results
Future Value is the total amount at the end of the period. Total Interest Earned is your profit above the original deposit. Effective Annual Rate is the real yearly return after accounting for compounding — it is always slightly higher than the stated rate when compounding is more frequent than annually. Total Compounding Periods is the number of times interest was applied.
