Compounding Calculator
The power of compounding
Inputs
Result
Principal
Interest earned
Maturity value
Compounded at % p.a. for years.
The formula
A = P × (1 + r/n)n×t
Where P = principal, r = annual rate (decimal), n = compounding periods per year, t = years.
Why frequency matters
The more often interest is compounded, the higher the final amount — but the difference shrinks as frequency rises. Yearly → Monthly at 10% over 20 years adds about 3.5% to the final corpus; Monthly → Daily adds another ~0.5%. For practical purposes, monthly compounding is "close enough" to continuous.