Calculator
Compound Interest Calculator
A 6% rate compounded daily grows faster than 6% compounded annually, and the classic formula — A = P(1 + r/n)^(nt) — makes the reason explicit rather than hiding it in a spreadsheet. This runs a principal at one nominal rate across every common compounding frequency side by side, so the effect of frequency alone is visible on its own, separate from the rate.
Results
Ending balance
$0.00
Total interest
$0.00
Effective annual rate
0.00%
this frequency's APY
Principal & rate
Compounding frequency
How often interest is calculated and added to the balance. Continuous is the theoretical limit — compounding infinitely often — via A = Pert.
The comparison table below prices this same principal, rate, and term at every frequency, so the effect of frequency alone is visible on its own.
Ending balance by compounding frequency
Every row uses the identical principal, nominal rate, and term — only the compounding frequency changes. This is how much frequency alone is worth.
How this is calculated
For educational purposes only. Results are estimates and do not constitute financial, tax, or legal advice. Consult a qualified professional before making any financial decisions.
How to use it
Enter a principal, an annual interest rate, a number of years, and how often it compounds.
The results show the ending balance, total interest, and effective annual rate for your chosen frequency — then the same principal, rate, and years priced at every other frequency below it, so you can see exactly what frequency alone is worth.
Try switching from annual to daily compounding at the same nominal rate and watch how little the ending balance actually moves.
Assumptions
- Uses the classic closed-form formula A = P(1 + r/n)^(nt) — no contributions, withdrawals, or fees along the way.
- "Continuous" compounding is the theoretical limit of compounding infinitely often, computed as A = Pe^(rt).
- The effective annual rate (APY) is what the nominal rate actually works out to once the chosen frequency's compounding is accounted for.
- Assumes the rate stays constant for the entire term.
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