Compound interest calculator

Compound interest means you earn interest on your interest. Each period the interest is added to the balance, and the next period earns interest on that larger amount.

You can choose how often interest is added: yearly, quarterly, monthly or daily. The more often, the higher the effective yearly rate. Monthly deposits arrive at the end of each month and start earning from then.

How much difference does monthly compounding make?

At 5 % a year, monthly compounding gives an effective rate of about 5.12 %. Over decades that small gap adds up, but the rate itself and how long you stay invested matter far more.

Are taxes and fees included?

No. Taxes on interest and fund fees reduce the real growth, so use a rate after fees if you know it.