Compound Interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It’s often called “interest on interest” and can significantly increase your investment returns over time.

The formula used is: A = P(1 + r/n)^(nt), where A is the final amount, P is principal, r is annual rate, n is compounding frequency, and t is time in years. This calculator helps you understand how your money can grow through the power of compounding.