Use this tool to calculate how much your money will grow over time using the power of compounding.
Compound interest is calculated using the following mathematical formula:
A = P(1 + r/n)^(nt)
The more frequently interest is added back to your principal, the faster your wealth grows. For example, monthly compounding will yield a slightly higher return than annual compounding at the same interest rate because your interest starts earning its own interest much sooner.