What is Compound Interest?

Compound interest is when earned interest is added to the original amount and interest for the new period is calculated based on the balance amount. This allows the principal amount to grow ever-faster over a long enough time period.

You can use the calculator below to work out the compound interest for an amount based on the interest rate and number of years.

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  • "What is Compound Interest?". StudyFinance.com. Accessed on January 28, 2022. https://studyfinance.com/compound-interest/.

  • "What is Compound Interest?". StudyFinance.com, https://studyfinance.com/compound-interest/. Accessed 28 January, 2022

  • What is Compound Interest?. StudyFinance.com. Retrieved from https://studyfinance.com/compound-interest/.