Interest growth with flexible compounding frequency.
Calculate compound interest wealth growth across flexible compounding frequencies including monthly, quarterly, or annual schedules.
Where: A is maturity amount; P is principal; r is annual interest rate; n is compounding frequency per year; and t is tenure in years.
More frequent compounding periods (e.g. monthly vs annually) add earned interest back into the principal faster, resulting in higher effective annual yields.
Simple interest calculates returns strictly on original principal, whereas compound interest earns interest on previous interest accumulations, yielding exponential growth.
Divide 72 by your annual compound interest rate to quickly approximate how many years it will take to double your initial capital investment.
It refers to how often earned interest is credited to the principal balance (e.g., daily, monthly, quarterly, or annually).
Monthly compounding reinvests earned interest 12 times a year, increasing the principal base on which subsequent interest is calculated.
Input your principal amount, rate of return, tenure, and compounding frequency into our tool to view principal vs interest breakdowns.