How compound interest works
Future value ≈ principal × (1 + periodic rate)^periods. Contributions each period also earn subsequent interest.
Finance
No signup required
See how your money grows with compounding.
Compare with last save
Previous: · Delta:
A = P (1 + r/n)^(n·t)
10,000 at 12% for 5 years, monthly compounding.
Model compound growth of a principal over time, with optional regular contributions. Not a guaranteed return—fees and taxes may apply.
Future value ≈ principal × (1 + periodic rate)^periods. Contributions each period also earn subsequent interest.
Inflation and fees reduce real growth. Mismatching annual rates with monthly compounding periods is a classic error.
Sources: Basic finance maths · Investor education materials
Compound interest earns interest on interest.