Investment Details
Final Amount
$14,859
Principal
$10,000
Interest Earned
$4,859
Growth %
48.59%
What is Compound Interest?
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It's often called "interest on interest" and causes investments to grow exponentially over time.
Compound Interest Formula
The mathematical formula to calculate compound interest is:
A = P × (1 + r/n)^(n×t)
Where:
A = Final amount
P = Principal amount
r = Annual interest rate (in decimal)
n = Number of times interest is compounded per year
t = Time in years
How to Use This Calculator
- Enter your initial investment amount (principal)
- Input the annual interest rate
- Specify the investment duration in years
- Select how often interest is compounded
- See your total growth and interest earned