About Compound Interest

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It is a powerful concept for growing investments or loans over time. The more frequently interest is compounded, the greater the total amount will be.

• Formula (discrete compounding): FV = P × (1 + r/n)nt + PMT × [(1 + r/n)nt - 1] / (r/n)
• Formula (continuous compounding): FV = P × ert

Where:
P = principal, r = annual interest rate (decimal), n = compounding periods per year, t = years, PMT = periodic contribution, e = Euler's number (~2.718).

This calculator supports various compounding frequencies and optional periodic contributions, making it suitable for savings, investments, and loan growth projections.