The compound interest formula and what each variable means. For the reasoning behind it, see Compound Interest Explained.
The Compound Interest Calculator calculates final balance and total interest earned for any rate, term, and compounding frequency.
Compound Interest Calculator
How often interest compounds per year: 1 for annually, 12 for monthly, 365 for daily. More frequent compounding produces slightly more growth for the same rate.
Simple interest is only ever calculated on the original principal. Compound interest is calculated on the principal plus all previously earned interest, so growth accelerates over time.
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