| Year | Start | Contrib | Interest | Tax | End |
|---|
Use our Compound Interest Calculator to see how your money grows with daily, monthly, quarterly, or yearly compounding. Whether you’re saving in a compound interest savings account, investing in CDs (certificates of deposit), planning for retirement with a Roth IRA, or comparing money market accounts, this tool helps you estimate your future balance instantly.
Compound interest means you earn interest on your original balance and on the interest that accumulates over time. This “interest on interest” effect makes your money grow faster compared to simple interest.
The compound interest formula is:
FV = P × (1 + r/m)^(m×t) + C × [((1 + r/m)^(m×t) − 1) ÷ (r/m)]
Where:
Use our tabs to switch between daily, monthly, APY, CD, and money market scenarios.
Many banks offer compound interest savings accounts and money market accounts that accrue daily interest but credit it monthly. Our calculator lets you:
For example, at 5% annual interest compounded daily, £10,000 grows slightly faster than with monthly compounding, even though both advertise the same APY.
A CD (certificate of deposit) is a fixed-term savings product. You deposit money for a set term (6, 12, or 60 months) and earn guaranteed interest.
This helps you estimate the maturity value before locking in your money.
For compound interest investments, such as ETFs, stocks, or mutual funds, returns are variable. Our tool lets you:
Even small contributions can grow significantly over decades due to the power of compounding.
Interest Rate (Nominal): The stated yearly rate, without compounding effects.
APY (Annual Percentage Yield): The effective yearly return, including compounding.
Our APY interest calculator helps you compare accounts with different compounding schedules (daily vs monthly).
Q: How do I calculate daily compound interest?
Enter your deposit, rate, and years, then select Daily compounding. The calculator uses 365 compounding periods per year.
Q: Which is better, daily or monthly compounding?
Daily compounding yields slightly more than monthly. However, APY already accounts for this, so APY is the best way to compare accounts.
Q: Can I use this for CDs?
Yes. Set contributions to zero, choose a term in years, and pick monthly or daily compounding depending on your CD type.
Q: What’s the difference between APY and interest rate?
APY includes the effect of compounding. Interest rate alone doesn’t. Always compare using APY.
Q: How does compound interest work for investments?
For investments, compounding happens when you reinvest returns (dividends, interest, or gains). Over decades, compounding can multiply growth dramatically.
This Compound Interest Calculator is for educational purposes only. Results are estimates and may differ from actual account balances due to:
Variations in compounding rules between banks or investment platforms.
Taxes, inflation, or fees not factored in unless entered.
Changes in interest rates or investment returns.
Always confirm details with your bank, credit union, or financial advisor before making decisions.