Calculate growth of investments or loans with compound interest.
Compound interest is "interest on interest" - you earn returns not only on your original investment but also on all the interest you've previously earned. This creates exponential growth over time.
The earlier you start investing, the more time compound interest has to work. Even small amounts invested early can grow to substantial sums over decades.
Making regular monthly contributions significantly increases your final amount. This strategy, called dollar-cost averaging, also helps reduce investment risk.
Whether you're mapping retirement savings, estimating returns on a lump sum, or comparing account options, a quick calculation reveals how interest grows over time when earnings are reinvested. This guide explains practical uses, highlights useful tools, and shows how to pick the right calculator for your financial goals.
Banks and platforms often supply tailored calculators; for example, the Compound interest Calculator SBI helps customers estimate returns on fixed deposits, while institutional tools like the Vanguard Calculator focus on investment portfolios. If you want to convert interest rates to an annual perspective, try an APY compound interest calculator to understand true annual yields.
If you prefer spreadsheets, a Compound interest calculator Excel template lets you customize assumptions and see year-by-year schedules.
For simple web-based math, compound interest calculator widgets give instant answers.
Educational sites such as the Compound Interest Calculator on Moneychimp provide intuitive examples for beginners.
To compare different product types, use an investment calculator alongside an interest calculator or savings calculator for broader planning.
Compound interest relies on the compound interest formula, which multiplies your principal by (1 + rate / n)^(n×t), where the frequency of compounding matters. Grasping how compound interest works, where your interest keeps generating more returns, forms the foundation for building wealth over time. If you want a general-purpose tool, a compound interest calculator will cover most scenarios, and a compound interest account is the type of product to look for at banks or brokerages.