Compound interest is the process of earning interest on both the original principal and the accumulated interest from previous periods. Over time, this leads to exponential growth of your investment or savings.
Calculating compound interest helps you understand the growth potential of your savings or investments. It allows you to make informed decisions about long-term financial planning and compare different investment options.
The calculator assumes:
The frequency of compounding significantly impacts the total value. More frequent compounding means interest is added to the balance more often, accelerating growth.
Yes, the calculator lets you specify additional deposits. These are factored into the calculations, helping you plan for consistent investments.
Disclaimer: The information provided by these tools is for guidance only and does not constitute financial advice. While we aim to ensure accuracy, results may vary. Always consult a financial specialist for personalized advice.
