Use our compound interest calculator to discover how your savings can grow over time through the power of compounding. With records of your savings, interest rate, and time frame, you can see just how much money you can accumulate.
What is compound interest?
Compound interest is the process by which an investment grows over time as you earn interest on both your initial amount and the interest previously earned. Unlike simple interest, which is calculated only on the principal or the original deposit, compound interest includes previous interest payments added to your balance over time.
The frequency of your compounded interest, for example, daily, monthly, quarterly or annually, directly influences the speed at which your savings grow.
How does the compound interest calculator work?
Our compound interest calculator is designed to give you a clear, visual understanding of how your savings can grow. The recorded details get all the work done efficiently. Begin by entering your initial savings or investment balance, and add any regular deposit you plan to make. Further, add the annual interest rate you expect to earn and specify how long you plan to save or invest, including how often the interest is compounded, daily, monthly, quarterly or annually.
Once all details are entered, the calculator will display the total amount earned over your chosen period, also showing the interest earned and the final balance with an easy-to-read chart showing the growth of your investment. You can review results annually, monthly or daily, for a more detailed breakdown.
Save more with compound interest
The power of compounding lies in time. The longer you save, the more interest you earn, so the sooner you start saving, the greater your potential growth. Starting as soon as you can and saving regularly is key to gaining the most out of the scheme. Even small amounts can add up substantially when given time to compound.
Different compounding frequencies significantly impact savings by affecting the amount of interest earned each time. More frequent compounding means your interest is added more often, which helps your balance grow faster.
