See how a starting amount grows when interest earns interest.
The result
Enter your numbers, then calculate.
Formula, example & assumptions
Behind the answer
How it works
P is your starting amount, r is the annual nominal rate expressed as a decimal, n is the number of compounding periods per year, and t is time in years. Interest is the final amount minus P.
Final amount = P × (1 + r ÷ n)^(n × t)
A worked example
A starting amount of 1,000 at 5% a year, compounded annually for 3 years, becomes 1,157.625 before rounding. The estimated interest is 157.625.