Compound Interest Future Value Calculator
Enter a starting amount, annual rate and how often interest compounds to see what your investment could grow to.
Compound Interest Future Value Calculator
Projects the future value of a lump-sum investment given a rate, term and compounding frequency.
This calculator projects how a single lump-sum investment grows over time using the standard compound interest formula A = P(1 + r/n)^(nt). Choosing a higher compounding frequency (daily instead of annually, for example) captures the small extra benefit of interest earning interest more often. It's a foundational tool for comparing savings accounts, CDs, or any fixed-rate investment where you want to see the long-run effect of compounding rather than simple interest.
Example
- With the default values shown above, this calculator returns: Future Value ≈ $18194; Total Interest Earned ≈ $8193.97.
Frequently Asked Questions
What is the compound interest formula used?
A = P(1 + r/n)^(nt), where P is principal, r is the annual rate, n is compounds per year, and t is years.
Does more frequent compounding always mean more growth?
Yes — for the same nominal annual rate, more frequent compounding (e.g. daily vs annually) produces a slightly higher future value, though the difference shrinks the more frequent it already is.
Sources
- Standard formula, publicly documented method