Compound Interest Calculator

Calculate how interest compounds over time with different frequencies. See APY, ...

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$

Can be $0 for contribution-only plans

%

Can be 0% for simple savings tracking

$

Recurring deposit (SIP, RD, or 401k style) added at period end

A $10,000.00 investment at 5% compounded monthly grows to $16,470.09 in 10 years, earning $6,470.09 in interest.

Final Balance

$16,470.09

Total Interest Earned

$6,470.09

Total Invested

$10,000.00

Investment Breakdown

Principal (60.7%) Interest (39.3%)

APY (Effective Rate)

5.12%

Doubling Time

~14.4 years

Year-by-Year Growth

Final: $16,470.09
YearStart BalanceDepositsInterestEnd Balance
1$10,000.00-+$511.62$10,511.62
2$10,511.62-+$537.79$11,049.41
3$11,049.41-+$565.31$11,614.72
4$11,614.72-+$594.23$12,208.95
5$12,208.95-+$624.63$12,833.59
6$12,833.59-+$656.59$13,490.18
7$13,490.18-+$690.18$14,180.36
8$14,180.36-+$725.49$14,905.85
9$14,905.85-+$762.61$15,668.47
10$15,668.47-+$801.63$16,470.09
Total--$6,470.09$16,470.09

Compound Interest Formula

Principal Only

A = P(1 + r/n)nt

With Regular Contributions (PMT)

A = P(1 + r/n)nt + PMT[((1 + i)N - 1) / i]

A = Final amount (future value)

P = Principal (initial investment)

r = Annual interest rate (decimal)

n = Compounding frequency per year

t = Time in years

PMT = Regular contribution amount

i = Rate per contribution period

N = Total number of contributions

Calculation Method

This calculator uses month-by-month simulation for exact accuracy. Regular contributions are added at the end of each period (ordinary annuity). Interest compounds at your selected frequency, so the year-by-year table always matches the summary totals.

Quick answer

Compound interest is interest calculated on both your initial principal and the interest already earned, so your money grows faster over time. This free calculator applies the formula A = P(1 + r/n)^(nt), where P is your principal, r is the annual rate, n is the number of times interest compounds per year, and t is the number of years. It shows your final balance, total interest earned, APY, and a year-by-year growth table, and it also handles regular monthly or annual contributions in USD, INR, EUR, or GBP.

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Calculator Features

Accurate Simulation - Month-by-month calculation ensures summary matches table
5 Frequencies - Daily, monthly, quarterly, semi-annual, annual
Zero Principal OK - Calculate SIP-only growth starting from $0
Zero Rate OK - Track savings without interest (0% rate)
Doubling Time - Rule of 72 calculation included
APY Display - See effective annual yield

Why Use Compound Interest Calculator?

5 Compounding Frequencies

Compare daily, monthly, quarterly, semi-annual, and annual compounding to see how frequency affects your returns.

Year-by-Year Growth Table

Detailed breakdown showing start balance, deposits, interest earned, and end balance for each year.

APY Display

See your effective annual percentage yield (APY) - the true return after compounding is factored in.

Rule of 72 Calculation

Instantly see how long it takes to double your money at your chosen interest rate.

SIP / Monthly Contributions

Include systematic investment plan (SIP) contributions to see how regular deposits accelerate growth.

Visual Breakdown

Interactive chart showing principal, contributions, and interest earned as percentages of final value.

Perfect For

High-Yield Savings Accounts

Calculate actual returns on HYSA with daily compounding. Compare APY offers from different banks.

Certificate of Deposits (CDs)

Project CD returns with different terms and compounding frequencies. Plan CD laddering strategies.

Fixed Deposits (FD)

Calculate maturity value of fixed deposits with quarterly or annual compounding.

SIP / Recurring Deposits

Plan systematic investment with monthly contributions. See how regular deposits compound over time.

How It Works

1

Enter Principal Amount

Input your starting balance. This can be $0 if you're calculating SIP-only growth.

2

Set Interest Rate & Period

Enter the annual interest rate (APR) and number of years. Rates can be 0% for simple savings tracking.

3

Choose Compounding Frequency

Select how often interest compounds: daily (365x), monthly (12x), quarterly (4x), semi-annually (2x), or annually (1x).

4

Add Monthly Contributions

Optionally enter regular monthly contributions (SIP). Watch how small, consistent deposits compound dramatically.

Interest Tips

Compare APY, Not APR

When comparing savings accounts or CDs, always compare APY (not APR). APY already factors in compounding frequency, giving you the true annual return.

Monthly Contributions Matter Most

Over long periods, regular monthly contributions often contribute more to final balance than the initial principal. Consistency beats trying to time the market.

Compounding Frequency Difference is Small

Daily vs. annual compounding at 6% APR only adds ~0.17% to APY. Don't choose an account solely for compounding frequency - interest rate matters more.

Frequently Asked Questions

Compound interest is calculated with A = P(1 + r/n)^(nt). You take your principal P, add the rate r divided by the number of compounds per year n, raise that to the power of n times the number of years t, then multiply by P. The result A is your final balance, and A minus P is the interest earned. For example, 10,000 at 5% compounded monthly for 10 years grows to 16,470.09, earning 6,470.09 in interest.
The compound interest formula is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual rate as a decimal, n is how many times interest compounds per year, and t is the number of years. When you add regular deposits, the future value of a series PMT[((1 + i)^N - 1) / i] is added on top, with i the rate per period and N the total number of deposits.
Simple interest is calculated only on your original principal, so it grows in a straight line. Compound interest is calculated on the principal plus all the interest already earned, so it grows faster and faster over time. That earning interest on interest is why compound interest builds wealth over long periods.
Daily compounding produces a slightly higher return than monthly because interest is added more often, but the gap is small. At a 5% annual rate, daily compounding yields an APY of about 5.13% versus about 5.12% for monthly, a difference of roughly one cent per 100 over a year. The interest rate itself matters far more than the compounding frequency.
APR (annual percentage rate) is the stated yearly rate before compounding. APY (annual percentage yield) is the real return after compounding is factored in. A 5% APR compounded monthly produces an APY of about 5.12%. When comparing savings accounts, CDs, or fixed deposits, compare APY because it reflects what you actually earn.
Each recurring deposit is added at the end of its period and then compounds for the remaining time. Because earlier deposits compound longer than later ones, a steady monthly or annual contribution can end up contributing more to your final balance than the initial principal over long horizons. This calculator adds every deposit month by month so the totals stay exact.
Divide 72 by your interest rate to estimate the years needed to double your money. At 6% it is 72 divided by 6, or about 12 years. At 8% it is about 9 years. The rule is a close approximation for rates between 4% and 12%.
Yes. Set the principal to 0 to model a contribution-only plan such as a SIP or recurring deposit that starts from nothing. Set the rate to 0% to track plain savings with no interest. The calculator handles both without errors, so your final balance simply equals everything you deposited.

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