Calculate how your investment grows with compound interest and compare different scenarios.
| Compounding Period | Effective Annual Rate | Final Balance | Interest Earned | Difference vs Annual |
|---|
| Annual Rate | Final Balance | Total Contributed | Interest Earned | Interest Share |
|---|
Compound interest is when earned interest is added to the principal and the next period's interest is calculated on this total. This "interest on interest" effect provides exponentially growing returns over time.
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)] P = Principal, r = Annual rate, n = Compounding frequency, t = Years, PMT = Periodic contribution
The more frequently interest is compounded (daily > monthly > annual), the higher the effective return. However, the difference is usually small — the real impact comes from investment duration and regular contributions.
Track income & expenses, plan budgets, and generate reports with Parantaj.
Sign Up for Free