💰 Compound Interest Calculator
Calculate how your money grows over time with the power of compounding
📚 What is Compound Interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. It's often called "interest on interest" and makes your money grow faster than simple interest.
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Where:
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times compounded per year
- t = Number of years
- PMT = Monthly contribution
💡 Tips for Maximizing Compound Interest
- Start early — Time is the most powerful factor in compounding
- Be consistent — Regular contributions significantly boost your returns
- Reinvest dividends — Don't withdraw earnings, let them compound
- Increase rate when possible — Even 1% more makes a huge difference over decades
- Don't withdraw early — Compounding works best uninterrupted