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Compound Interest Calculator (Future Value)

Calculate the future value and interest of a compound investment from your principal, annual rate, and term. Supports annual, semi-annual, quarterly, and monthly compounding, and shows the effective annual rate.

Input

$
%
yr
Compounding frequency (times interest is added to principal)

Result

Future value (rate 3%, 10 yr)

$1,343,916.38

Principal

$1,000,000.00

Interest

$343,916.38

Effective annual rate

3.00 %

How it works

  • Future value is calculated as principal × (1 + r/m)^(m × n), where r is the annual rate as a decimal, m is the number of compounding periods per year, and n is the number of years.
  • Interest equals future value minus principal. Because interest itself earns interest under compounding, the balance grows faster than with simple interest.
  • Compounding frequency can be annual (once a year), semi-annual (twice a year), quarterly (4 times a year), or monthly (12 times a year). The larger m is, the slightly larger the future value for the same annual rate.
  • The effective annual rate is calculated as (1 + r/m)^m − 1 and represents the real yearly return after accounting for compounding frequency. With annual compounding it equals the nominal annual rate.
  • Amounts are rounded and shown with grouping separators, and the rate is shown to up to six decimal places. Taxes, fees, and inflation are not considered.
  • Results from this tool are estimates and do not guarantee the yield of any specific financial product or future returns. Always check the terms provided by your financial institution before investing or signing a contract.