Compound Interest Calculator

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It's the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.

Key benefits of compound interest:

• Your money grows faster than with simple interest
• Small, regular investments can grow significantly over time
• The longer your time horizon, the more powerful the effect