Compound Interest Calculator

Compounding earns interest on interest. Pick the compounding frequency and watch how the same rate produces very different results over time.

Adjust & watch it update

%
Time Unit
yrs
Compound Interest
Total Amount
Effective Annual Rate
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Frequently asked questions

How does compounding frequency change returns?

More frequent compounding means interest is added to principal sooner, so it earns interest earlier. Monthly compounding beats annual at the same nominal rate — the gap is the effective annual rate (EAR).

What is EAR?

Effective Annual Rate — the true yearly growth after accounting for compounding. An 8% rate compounded monthly has an EAR of about 8.30%.

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