# Compound Interest Calculator

Compound interest means that the interest you earn each year is added to your principal, so that the balance doesn't merely grow, it grows at an increasing rate. Click here to read more about interest rates.

## Compound Interest Formula

A = P × (1 + r)^{t}

**Where:**

A = the future value of the investment/loan, including interest

P = the principal investment amount (the initial deposit or loan amount)

r = the annual interest rate (decimal = %/100)

t = the number of periods (years, months, ...) the money is invested or borrowed for