Question 1

How is compound interest calculated?

Accepted Answer

Compound interest applies interest to both the original principal and the interest already earned. This calculator uses the standard formula with your principal, rate, compounding frequency, time and optional regular contributions to show the final balance and total interest.

Question 2

What does compounding frequency change?

Accepted Answer

More frequent compounding (monthly versus yearly) earns slightly more because interest is added sooner and starts earning itself. You can compare daily, monthly, quarterly and annual compounding.

Question 3

Is this financial advice?

Accepted Answer

No, it is an educational calculator. Real returns vary; consult a qualified advisor for decisions.

Compound Interest