Compound Interest Calculator

Final Amount

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Interest Earned

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Principal

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starting amount

Effective Rate (EAR)

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Rule of 72

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Wealth Multiple

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Extra vs SI

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Principal vs Interest

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Compound vs Simple Growth

Year-by-Year Breakdown

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Year	CI Balance	Interest (yr)	Total CI	SI Balance	CI Advantage

Understanding Compound Interest

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, compounding causes your wealth to grow exponentially.

A = P × (1 + r/n)^(n×t)
CI = A − P

Where: P = Principal, r = Annual rate (decimal), n = Compounding frequency per year, t = Time in years

The Effective Annual Rate (EAR) tells you the real annual return after accounting for compounding frequency. More frequent compounding always results in a higher EAR than the nominal rate.

The Rule of 72 is a quick mental shortcut: divide 72 by the annual rate to estimate how many years it takes for your money to double.