Project compound growth of a lump-sum investment or loan balance using the standard compound-interest model with configurable compounding frequency.
Formula
A = P × (1 + r/n)^(n×t)
Where P is principal, r is the annual rate as a decimal (rate % ÷ 100), n is compounding periods per year, and t is time in years. Total interest = A − P. The calculator also reports final amount (A) and total interest rounded to two decimal places.
More frequent compounding (larger n) increases A for the same nominal annual rate because interest earns interest sooner.
When to use it
Compare monthly versus annual compounding on savings scenarios, illustrate exponential growth in finance coursework, sanity-check spreadsheet FV formulas, or estimate long-term accrual before consulting detailed amortization tools.
Limitations
Assumes a fixed rate for the entire period—no variable rates, contributions, withdrawals, taxes, or fees. Negative principals and non-integer compounding counts are rejected. Results use JavaScript floating-point math; penny-level differences versus decimal libraries are possible on very long horizons.
Example
P = 1,000, 5% annual, 10 years, 12 compounds per year → A ≈ 1,647.01, interest ≈ 647.01.
Financial disclaimer
Results are illustrative projections only—not financial, tax, or investment advice. Real products include fees, inflation, credit risk, and regulatory constraints. Verify figures with a qualified advisor before making financial decisions.