Compound Interest Calculator
Calculate the power of compound interest with different frequencies and contributions
Initial amount to invest
Expected annual return rate
How long to invest
Quick Scenarios
Compound Interest Formula
Where:
- A = Final amount
- P = Principal (initial amount)
- r = Annual interest rate (decimal)
- n = Number of times interest compounds per year
- t = Number of years
Compound Interest Tips
⏰ Start Early
The earlier you start, the more time your money has to grow. Even small amounts can become substantial over time.
🔄 Frequency Matters
More frequent compounding (daily vs. annually) can increase your returns, but the difference diminishes at higher frequencies.
💰 Rule of 72
Divide 72 by your interest rate to estimate how many years it takes to double your money. Example: At 8%, money doubles in 9 years.
📈 Reinvest Returns
Always reinvest your interest earnings to maximize the compounding effect. Don't withdraw earnings if possible.
🎯 Set Realistic Rates
Stock market averages 7-10% annually over long periods. Be conservative with return assumptions for planning.
💸 Avoid Debt
High-interest debt compounds against you. Pay off credit cards before investing for better net returns.