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How to calculate compound interest

You have a deposit or an investment and a yearly rate. You will see what it grows to when interest earns interest, and how often compounding changes the result. 1000 at 5% for 10 years compounded monthly becomes 1647.01, of which 647.01 is interest. Nothing leaves this tab.

6-minute read

Today's result The future value and the total interest for your principal, rate, years and compounding frequency.

Open the compound interest calculator with the principal, the yearly rate and the term at hand. It assumes no deposits or withdrawals along the way and no tax. Nothing is uploaded.

Open Compound interest
Contents

  1. Know the formula

    Future value = principal × (1 + rate ÷ n)^(n × years), where n is how many times a year interest is added. Each period's interest is added to the balance, so the next period earns interest on it too.

    Future value = principal × (1 + rate ÷ n)^(n × years).
    Future value = principal × (1 + rate ÷ n)^(n × years).

  2. Open Compound interest on cv.cm

    1000, 5% a year, 10 years and monthly compounding are filled. The future value sits on the right. Nothing is uploaded.

    Open Compound interest

  3. Enter principal, rate and years

    Type the starting amount, the yearly rate in percent and the number of years. Use the nominal rate (APR) the bank quotes, not the effective rate.

  4. Pick how often it compounds

    Yearly gives 1628.89, quarterly 1643.62, monthly 1647.01, daily 1648.66. More frequent compounding adds a little each step, with diminishing gains.

    1000 at 5% for 10 years: yearly 1628.89, monthly 1647.01, daily 1648.66.
    1000 at 5% for 10 years: yearly 1628.89, monthly 1647.01, daily 1648.66.

  5. Compare with simple interest

    Simple interest would pay 5% of 1000 each year, 500 over 10 years. Compounding adds 147.01 more. The gap widens with higher rates and longer terms.

  6. Estimate doubling time, then copy

    The rule of 72: years to double ≈ 72 ÷ rate. At 5% that is about 14.4 years. Copy puts the future value and interest on the clipboard.

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FAQ

Can I calculate compound interest free online?

Yes. cv.cm does the math in this tab. Nothing is uploaded.

What is 1000 at 5% for 10 years?

1647.01 compounded monthly, 1628.89 compounded yearly.

What is the difference from simple interest?

Simple interest pays only on the original amount; compound interest also pays on interest already added.

How long does it take to double?

About 72 ÷ the rate in years: 14.4 years at 5%, 9 years at 8%.

Does it include regular deposits?

No. It shows one starting amount growing with no deposits, withdrawals or tax.