Investment
Compound Interest Calculator
Calculate how your money can grow with compound interest.
Use CalculatorSimple Interest Calculator
Calculate interest that's earned only on the original principal, and see how it compares with compounding.
How it works
Interest = principal × annual rate × years.
Future value = principal + interest.
For comparison, the chart also shows the same rate compounded annually.
Formula & methodology
I = P × R × T
- P
- Principal
- R
- Annual rate (decimal)
- T
- Time in years
Simple interest never earns interest on interest; compound interest does.
Illustrative example
$10,000 at 5% for 3 years
Interest = $10,000 × 0.05 × 3 = $1,500, for a future value of $11,500.
Compounded annually, the same deposit would grow to about $11,576.25.
Hypothetical figures for illustration only.
Frequently asked questions
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