Investing & GrowthCompound Interest Calculator
Mathematical Formula
A = P · (1 + r/n)^(n · t)
- A = Future accumulated value (principal + interest)
- P = Initial principal investment
- r = Annual nominal interest rate (decimal)
- n = Compounding frequency per year (12 = monthly, 365 = daily)
- t = Time horizon in years
Simple interest grows linearly based solely on the original principal deposit. Compound interest grows exponentially because accumulated interest is added back into the principal, earning additional interest in subsequent compounding periods.
The more frequently interest compounds (annually, monthly, or daily), the faster your wealth accumulates over multi-year horizons.
Mathematical model verified & deterministicCalculate Compound Growth