What is the compound interest formula?

A = P × (1 + r/n)^(n×t), where P is the starting amount, r the yearly rate, n the compounds per year and t the years.

Why does compounding more often earn more?

Interest is added to the balance more often, so later interest is calculated on a larger amount. The effect is small between monthly and daily.

No. It is a maths tool. Real returns vary and investments can lose value.

Compound interest

Find out what your money grows to when interest earns interest.

Starting amountInterest rate (per year)%YearsCompounded

Final amount

221,964.02

Interest earned

121,964.02

2.22× your money

Step 1
Enter the amount
Type your starting amount, yearly rate and number of years.
Step 2
Pick the compounding
Choose yearly, quarterly, monthly or daily.
Step 3
See the growth
Read the final amount and the interest earned.