Compound Interest Calculator: Calculate Interest
Interest after 10 years
Total amount
$19,671.51
Total interest
$9,671.51
Initial amount
$10,000.00
ROI(Return on investment)
96.72%
Interest rate(yearly)
7%
Compound interval
yearly
Year
Interest
Accumulated interest
Total
1
$700.00
$700.00
$10,700.00
2
$749.00
$1,449.00
$11,449.00
3
$801.43
$2,250.43
$12,250.43
4
$857.53
$3,107.96
$13,107.96
5
$917.56
$4,025.52
$14,025.52
6
$981.79
$5,007.30
$15,007.30
7
$1,050.51
$6,057.81
$16,057.81
8
$1,124.05
$7,181.86
$17,181.86
9
$1,202.73
$8,384.59
$18,384.59
10
$1,286.92
$9,671.51
$19,671.51
What is compound interest
Compound interest is interest accumulated from a principal sum and previously accumulated interest. It is the result of reinvesting or retaining interest. Compound interest is the opposite of simple interest, where previously accumulated interest is not added to the principal amount of the current period.
The benefits of compound interest
Below is an example table of an $10.000 investment for a 20 years period, from a 10% interest rate to no interest at all. By comparing these figures, it becomes clear that compound interest significantly increases investment value over time.
Year
No interest
5% interest
10% interest
1
$10.000
$10,500.00
$11,000.00
2
$10.000
$11,025.00
$12,100.00
3
$10.000
$11,576.25
$13,310.00
4
$10.000
$12,155.06
$14,641.00
5
$10.000
$12,762.82
$16,105.10
6
$10.000
$13,400.96
$17,715.61
7
$10.000
$14,071.00
$19,487.17
8
$10.000
$14,774.55
$21,435.89
9
$10.000
$15,513.28
$23,579.48
10
$10.000
$16,288.95
$25,937.42
11
$10.000
$17,103.39
$28,531.17
12
$10.000
$17,958.56
$31,384.28
13
$10.000
$18,856.49
$34,522.71
14
$10.000
$19,799.32
$37,974.98
15
$10.000
$20,789.28
$41,772.48
16
$10.000
$21,828.75
$45,949.73
17
$10.000
$22,920.18
$50,544.70
18
$10.000
$24,066.19
$55,599.17
19
$10.000
$25,269.50
$61,159.09
20
$10.000
$26,532.98
$67,275.00
Frequently asked questions
How to calculate the future value of your investment?
To calculate the future value, you divide the annual interest rate by 100 divide it by the interval and add one to it. Multiply this by the initial investment to the power of the interval multiplied by the years.
Future value = investment × (1 + (annual interest rate / 100) / interval)^(interval × years)
Future value = investment × (1 + (annual interest rate / 100) / interval)^(interval × years)
How to calculate the interest?
To calculate the interest, you divide the annual interest rate by 100 divide it by the interval and add one to it. Multiply this by the initial investment to the power of the interval multiplied by the years. Substract the initial investment from it and you have the interest.
Interest = investment × (1 + (annual interest rate / 100) / interval)^(interval × years) - investment
Interest = investment × (1 + (annual interest rate / 100) / interval)^(interval × years) - investment