Free Compound Interest Calculator

Compound interest is the effect of earning (or paying) interest on top of previously accrued interest. Over long periods it dwarfs simple interest — this calculator quantifies both the maturity value and the year-by-year growth path.

Results

Principal$10,000.00
Compound interest$12,196.40
Maturity value$22,196.40

Growth over 10 years

$10,000.00$22,196.40

Disclaimer: This calculator provides estimates only and does not constitute financial advice. Actual loan terms may vary by lender.

About the Compound Interest Calculator

The formula

A = P × (1 + R/n)^(nt), where P is principal, R is annual rate (decimal), n is compounding frequency per year (1 annual, 4 quarterly, 12 monthly) and t is time in years. Compound Interest = A − P.

Why compounding frequency matters

The more frequent the compounding, the higher the effective yield. $10,000 at 10% for 10 years is $25,937 annually compounded, $26,850 quarterly, $27,070 monthly. Small on year one, meaningful by year ten.

The rule of 72

A quick sanity check: money doubles in roughly 72 ÷ interest rate years. At 8% compound, money doubles in about 9 years. Use this to spot-check the calculator's output.

Frequently asked questions

Related Loan Tools

Other free tools in the loans & financing silo.