Compounding Calculator

Compounding Calculator

Initial Investment ($): Annual Interest Rate (%): Investment Duration (years): Compounding Frequency: Annually Quarterly Monthly Daily

*This tool is for educational purposes only. Always consult a financial advisor for investment decisions.

How It Works

This compound interest calculator helps you estimate the growth of your investments over time. By entering the initial amount (principal), interest rate, compounding frequency (how often interest is added to the principal), and the duration of the investment, you can see how your money will grow. This tool is ideal for planning your savings, investments, or loan repayments.

Example

For example, if you start with $1,000 at an annual interest rate of 5% compounded monthly for 5 years, your investment will grow to approximately $1,283.36. This demonstrates the power of compounding, where interest is earned on both the initial principal and the accumulated interest from previous periods.

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