Compound Interest Calculator
See how your wealth grows over time with the power of compounding.
Total Maturity Value:
The Magic of Compounding
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Einstein famously called it the "Eighth Wonder of the World."
The Formula
Our calculator uses the standard compound interest formula:
A = P\initial X (1 + {r}/{n})^{nt}
Where:
A = Final Amount (Maturity Value)
P = Principal Amount
r = Annual Interest Rate (decimal)
n = Number of times interest compounds per year
t = Number of years
Why Compounding Frequency Matters?
The more frequently the interest is added to the principal, the faster your money grows. For example, monthly compounding will result in a slightly higher final amount compared to yearly compounding at the same interest rate.