Compound Interest Calculator
Compound interest means earning interest on your interest. The more often it compounds — yearly, half-yearly, quarterly or monthly — the faster money grows at the same nominal rate. This calculator also shows the effective annual yield so you can compare offers with different compounding schedules.
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The formula
A = P × (1 + r/n)^(n×t)
FAQ
What is the rule of 72?
Divide 72 by your annual return to approximate how many years your money doubles. At 8%, that is about 9 years.
Does monthly compounding beat quarterly?
Yes, at the same nominal rate — more frequent compounding means a higher effective yield (8% compounded monthly yields 8.30% effectively).
What is effective annual rate?
The real yearly growth after compounding. It is always equal to or above the quoted nominal rate whenever compounding happens more than once a year.