Financial Tool
Compound Interest Calculator
Visualize the power of exponential growth on your capital over time.
What is compound interest?
Compound interest is the mechanism by which the interest generated each period
is added to the principal, and that enlarged capital then generates further interest in the next period.
In other words: you earn interest on your previous interest, producing
exponential rather than linear growth.
Unlike simple interest —which only applies the rate to the original principal— compound
interest amplifies every euro invested as time goes on. The earlier you start and the higher
the compounding frequency, the more powerful the effect. Einstein called it
"the eighth wonder of the world".
A = P × (1 + r/n)n × t
A final capital
P initial capital
r annual rate
n periods/year
t years
⏳ TimeThe most decisive factor: doubling the horizon can quadruple the result.
🔄 FrequencyMonthly compounding outperforms annual compounding at the same nominal rate.
💸 ContributionsSmall regular contributions enormously accelerate the final growth.
Parameters
€
%
yr
€
◈
Projection
Final capital
—
Interest earned
—
Total contributed
—
Growth factor
—
Effective annual rate
—
Total return
—
Invested capital
Interest
| Year | Opening balance | Contributed | Interest | Closing balance | Cumul. return |
|---|