Calculate how your money can grow over time with compound interest
Number of years for investment
Monthly additions to principal
| Year | Principal | Interest | Balance |
|---|
Simple interest would have earned: $0
Compound interest earned $0 more than simple interest
Have you ever wondered how your savings can multiply over time? Our Compound Interest Calculator helps you understand exactly how your money grows through compounding. Whether you're planning long-term investments, saving for retirement, or calculating loan repayments, this free online compound interest calculator makes it effortless. Known as the “eighth wonder of the world,” compound interest lets your money earn interest on both the initial amount and the accumulated interest — accelerating your financial growth. Let’s explore how this tool works and why it’s essential for every investor and saver.
Compound interest means earning interest on your principal amount plus the interest that’s already been added over time. Unlike simple interest, which only applies to your starting amount, compound interest builds wealth exponentially. It’s one of the most powerful concepts in finance — especially when you start early and invest consistently.
Example: If you invest $1,000 at a 5% annual rate compounded yearly, after one year you’ll have $1,050. In the second year, you earn 5% on $1,050 (not just $1,000), resulting in $1,102.50. Over time, this small difference creates massive growth — that’s the magic of compounding!
The Compound Interest Calculator at Rajkumarlogre.com is designed to make complex calculations simple and accurate. Here’s how to use it:
Within seconds, the CI calculator shows accurate results — no manual math, no confusion.
Our investment growth calculator simplifies financial planning and shows how small contributions can lead to big outcomes. Here’s why you’ll love it:
The formula used by our calculator is:
A = P (1 + r/n)^(nt)
Example: If you invest $5,000 at 4% annual interest, compounded monthly for 3 years:
| Variable | Value |
|---|---|
| Principal (P) | $5,000 |
| Interest Rate (r) | 4% (0.04) |
| Frequency (n) | 12 |
| Time (t) | 3 years |
| Result | A = 5000 (1 + 0.04/12)^(12*3) = $5,636.50 |
So, your investment grows by $636.50 — effortlessly calculated using our CI tool.
| Feature | Compound Interest | Simple Interest |
|---|---|---|
| Calculation | Interest on principal + accumulated interest | Interest only on principal |
| Growth Type | Exponential | Linear |
| Formula | A = P(1 + r/n)^(nt) | A = P(1 + rt) |
| Best For | Investments, savings | Short-term loans |
1. What is a Compound Interest Calculator?
It’s a free online tool that helps you calculate how your money grows with compounding over time.
2. How often is interest compounded?
Interest can be compounded daily, monthly, quarterly, or annually — frequent compounding gives higher returns.
3. Can it be used for loan calculations?
Yes, you can use it to estimate total loan interest and repayment amounts easily.
4. Is the tool free to use?
Absolutely! The Compound Interest Calculator is 100% free and requires no registration.
5. How accurate are the results?
Our calculator follows the globally accepted compound interest formula for precise and reliable results.
Compound interest is the foundation of smart investing. With our Compound Interest Calculator on Rajkumarlogre.com, you can visualize how your wealth grows, plan your investments better, and take control of your financial future. Try it today — and experience how small savings today can become big gains tomorrow!