Compound Interest Calculator

Calculate how your investments can grow over time with compound interest.

By Sarah Johnson, CFA•April 29, 2025

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Understanding Compound Interest Calculator

Calculator with financial charts and growing investment graph

Compound interest is the interest earned on both the initial principal and the accumulated interest from previous periods. It works like a snowball effect, where your money grows faster over time because you earn interest on top of interest. The formula for compound interest is: A = P(1 + r/n)^(nt) where: A = Final amount, P = Principal (initial investment), r = Annual interest rate (decimal), n = Number of times interest compounds per year, t = Time in years

Sarah Johnson, CFA

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Senior Financial Advisor at Johnson Financial Strategies

Expertise in:

Retirement PlanningSustainable InvestingPortfolio Management

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