Compound interest calculator
Determine how much your money can grow using the power of compound interest
Determine how much your money can grow using the power of compound interest
Compound interest is interest earned on money that was previously earned as interest. Thought to have been described by Einstein as the eighth wonder of the world, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which simply means a set percentage of the principal every year.
If you'd like to see how you could be benefiting, simply use our compound interest calculator.
Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one.
The total initial amount of the loan is then subtracted from the resulting value.
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