Compound Interest Calculator
Calculate compound interest with different compounding frequencies and view a year-by-year breakdown.
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Final Amount
$221,964.02
Total Interest Earned
$121,964.02
Principal Amount
$100,000.00
Principal vs Interest
Principal (45.1%) Interest (54.9%)
Year-by-Year Breakdown
| Year | Balance | Interest Earned | Year Growth |
|---|---|---|---|
| 1 | $108,299.95 | $8,299.95 | $8,299.95 |
| 2 | $117,288.79 | $17,288.79 | $8,988.84 |
| 3 | $127,023.71 | $27,023.71 | $9,734.91 |
| 4 | $137,566.61 | $37,566.61 | $10,542.90 |
| 5 | $148,984.57 | $48,984.57 | $11,417.96 |
| 6 | $161,350.22 | $61,350.22 | $12,365.65 |
| 7 | $174,742.21 | $74,742.21 | $13,391.99 |
| 8 | $189,245.72 | $89,245.72 | $14,503.52 |
| 9 | $204,953.02 | $104,953.02 | $15,707.30 |
| 10 | $221,964.02 | $121,964.02 | $17,011.00 |
Frequently Asked Questions
What is the compound interest formula?
The formula is A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times interest compounds per year, and t is the number of years.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus all previously earned interest — causing your money to grow exponentially over time.
How does compounding frequency affect returns?
More frequent compounding (e.g., daily vs. annually) yields slightly higher returns because interest is reinvested sooner. However, the difference shrinks as frequency increases.
Why is compound interest called the eighth wonder of the world?
This quote, often attributed to Einstein, highlights how compound interest accelerates wealth growth over long periods — small, consistent returns can produce dramatically large results given enough time.