Compound Interest Calculator
See how your money grows with compound interest. Our AI explains the results and gives personalized tips.
Invest Automatically — Start With Just $5
Acorns rounds up your everyday purchases and invests the spare change. Build wealth on autopilot with expert-built portfolios matched to your goals.
Start Investing FreeWhat is Compound Interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It's often called "interest on interest" and is one of the most powerful forces in finance. Albert Einstein reportedly called it the "eighth wonder of the world."
How Does Compound Interest Work?
When you invest or save money, you earn interest on your initial deposit. With compound interest, you then earn interest on both your original deposit AND the interest you've already earned. Over time, this creates exponential growth — your money starts growing faster and faster.
The Compound Interest Formula
A = P(1 + r/n)^(nt)
- A = Final amount
- P = Principal (initial investment)
- r = Annual interest rate (decimal)
- n = Number of times interest compounds per year
- t = Number of years
Frequently Asked Questions
Related Articles
How Compound Interest Works: Turn $1,000 Into $10,000
Einstein called it the eighth wonder of the world. Here's exactly how compound interest grows your money — and how to maximize it.
What Is Inflation and How Does It Affect Your Money?
Inflation silently erodes your savings every year. Here's exactly how it works, what causes it, and how to protect your money from it.
How to Build Generational Wealth: A Practical Guide
Generational wealth isn't just for the ultra-rich. Here's how ordinary families build lasting financial legacies through investing, real estate, education, and estate planning.