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What is Compound Interest?

Compound interest is when you earn interest on both your original money and the interest already added. This leads to faster growth over time.

How this calculator works

Enter your principal, interest rate, and number of years to estimate future value.

Example Growth

Initial Rate Years Future Value
£1,0005%10£1,628
£5,0005%10£8,144
£10,0007%10£19,671

Investment Calculator

Compound Interest FAQ

What is compound interest used for?

Savings, investments, pensions, and loans.

Is compound interest better than simple interest?

Yes, because interest earns interest over time.

How often is interest compounded?

It depends on the provider — daily, monthly, or yearly.