Compound Interest Calculator

Compounding interest is calculating interest on interest.
When you are saving money compounding means you are reinvesting your interest to earn additional interest payments. However, if you are borrowing and not making regular interest payments the amount you owe will increase quicker as interest becomes due on the existing loan amount plus interest accrued to date.

Our Compound Interest Calculator Has Two Modes.
1. Loan Interest
2. Savings Interest
As you will see, the total amount of compounded interest is the same. Therefore in the case of savings interest compounding works in your favour but in the case of loans interest compounding works against you.

Loan Compound Interest Calculator

Loan Amount
Annual Interest Rate
Length of loan (Years)
Total amount payable
Compounded Interest Repayable


Savings Compound Interest Calculator

Initial Savings Deposit
Annual Interest Rate
Number of Years
Savings at End of Term
Compounded Interest Received

Compound Interest Calculation Demo

Starting amount: £1,000
Annual interest rate: 3%
Number of years: 5

Year Interest Earned Compounded Balance
0 £0 £1,000
1 £30 £1,030
2 £30.90 £1,060.90
3 £31.83 £1,092.73
4 £32.78 £1,125.51
5 £33.77 £1,159.27

If interest compounding is not applied then the yearly profile would like this:

Year Interest Earned Compounded Balance
0 £0 £1,000
1 £30 £1,030
2 £30 £1,060
3 £30 £1,090
4 £30 £1,120
5 £30 £1,150

Compound interest therefore accounts for a difference of £9.27 in the example shown.

The starting amount and the interest rate impact the overall size of interest due to compounding.

However, it is also important to understand that the frequency at which interest is compounded will impact the size of interest due to compounding.

The more frequently compound interest is calculated, the larger the amount of interest due to compounding at the end of the term.





Index of Interest Calculators