Compound Interest Calculator

What is Compound Interest?

Compound interest is the "interest on interest" that you earn on an investment. It's the process where the interest you earn is added back to your principal amount, and then the *new* (larger) principal earns its own interest, creating a snowball effect. It's one of the most powerful concepts in finance, allowing a modest amount of savings to grow into a large nest egg over time.

How Compounding Frequency Affects Your Growth

This calculator lets you see how *often* your interest is compounded, and it makes a real difference.

• Annually (1x per year): Interest is calculated and added to your balance once per year.
• Quarterly (4x per year): Interest is added four times per year. This is common for some bonds and stocks.
• Monthly (12x per year): Interest is added every month. This is typical for high-yield savings accounts in the US.
• Daily (365x per year): Interest is calculated and added every single day. This will result in the fastest growth.

The more frequently your interest is compounded, the faster your money grows, even if the annual rate is the same. This tool is perfect for modeling a high-yield savings account (HYSA), a Certificate of Deposit (CD), or your 401(k) or IRA growth.