Compound Interest Calculator
See how your investment grows over time with the power of compounding.
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Final Amount
€0.00
Total Interest
€0.00
Principal
€0.00
Year-by-Year Growth
| Year | Balance | Interest Earned |
|---|---|---|
How Compound Interest Works
Compound interest earns interest on both your principal and previously accumulated interest. This "interest on interest" creates exponential growth — the longer you invest, the more powerful the effect.
The Formula
A = P × (1 + r/n)^(n×t)
Where:
A = Final amount
P = Principal (initial investment)
r = Annual interest rate (decimal)
n = Compounding periods per year (12 for monthly)
t = Time in years
Compounding Frequencies
The more often interest compounds, the higher your returns. Daily compounding yields slightly more than monthly, which yields more than yearly compounding — though differences are small at low interest rates.