About the Compound Interest Calculator
Compound interest is interest earned on both your original deposit and on the interest already added to it. Over long periods this 'interest on interest' effect is what turns modest, regular saving into a large sum — which is why it's often called the eighth wonder of the world.
This calculator applies the formula A = P(1 + r/n)^(nt), where P is the principal, r is the annual rate, n is how often interest compounds each year, and t is the number of years. The more frequently interest compounds — daily versus yearly, for example — the faster your balance grows, so the tool lets you compare compounding frequencies side by side.