Calculate compound interest with various compounding frequencies. See exactly how much interest your savings or investment will earn.
Compound interest is calculated as A = P(1 + r/n)^(nt). Unlike simple interest — which only earns interest on the principal — compound interest earns interest on the growing total balance each period.
$10,000 at 5% for 10 years: Simple interest earns a flat $5,000 ($500/year). Monthly compound interest earns $6,470 — $1,470 more, purely from compounding.