Compound Interest Calculator
Free compound interest calculator: enter principal, rate, years and compounding frequency to get the future value, total interest, effective annual rate and a year-by-year schedule.
| 年度 | 年初本金 | 当年利息 | 年末本息 |
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How to Use
- Set the inputs
Enter the initial principal, annual rate and number of years, then pick the compounding frequency (yearly, semi-annually, quarterly, monthly or daily).
- Read the results
The panel shows the future value, total interest, growth multiple and effective annual rate.
- Check the yearly schedule
The table below lists the opening balance, interest earned and closing balance for each year, so you can see the compounding effect accelerate.
FAQ
How is compound interest calculated?
Future value = principal × (1 + annual rate ÷ periods per year) ^ (periods per year × years). For example 100,000 at 5% compounded monthly for 10 years grows to about 164,700.
Does compounding frequency matter much?
Somewhat but not dramatically. At the same nominal rate, more frequent compounding yields slightly more. 5% compounded annually is exactly 5%, monthly is about 5.116% and daily about 5.127% effective.
What is the effective annual rate?
It converts the compounding effect into the real growth over one year, also called EAR. Use it to compare products with different compounding frequencies without being misled by the nominal rate.
How does it differ from simple interest?
Simple interest only pays on the principal, so interest never earns interest. Compound interest folds interest back into the principal, and the gap widens over time. 100,000 at 5% for 10 years yields 150,000 with simple interest versus about 164,700 compounded monthly.