Compound Interest
Calculate capital growth with compound interest
Compound Interest Calculator Online Free
Calculate how much your capital will grow over time thanks to compound interest. Enter the initial capital, annual interest rate, duration in years and compounding frequency. You can also add periodic contributions (monthly, quarterly, etc.) to simulate a savings or investment plan.
How It Works
- Enter the initial capital (e.g. €1,000)
- Set the annual interest rate (e.g. 5%)
- Choose the investment duration in years
- Select the compounding frequency (monthly is most common)
- Optionally add a periodic contribution to simulate regular deposits
- The result shows the final capital, interest earned and the multiplier
Frequently Asked Questions
What is compound interest?
Compound interest is the mechanism by which earned interest is added to the principal and itself generates new interest. It's often called 'the eighth wonder of the world' because it makes capital grow exponentially over time.
What is the difference between simple and compound interest?
With simple interest, interest is always calculated on the initial principal. With compound interest, interest is calculated on the principal plus already earned interest, producing exponential growth.
What does monthly compounding frequency mean?
With monthly compounding, interest is calculated and added to the principal every month (12 times per year). The higher the frequency, the greater the final growth thanks to interest on interest.