Compound Interest Calculator

Worked example

Principal $5,000 at 4% annual for 10 years, compounded monthly (m = 12): A = 5000×(1 + 0.04/12)^(12×10) ≈ $7,450. Interest earned ≈ $2,450. More frequent compounding raises A slightly versus annual compounding at the same nominal rate.

\[ A=5000\left(1+\frac{0.04}{12}\right)^{120}\approx 7450 \]

FAQ

Sources

• https://en.wikipedia.org/wiki/Compound_interest

Assumptions and limitations

Personal finance figures are illustrative. Taxes, insurance, fees, and lender overlays are omitted unless a field names them. This is not financial advice.

Nominal annual rate is converted as r/m per period. Taxes and fees are omitted.