Compound interest calculator

Margarette Burnette is a NerdWallet authority on savings, who has been writing about bank accounts since before the Great Recession. Her work has been featured in The Associated Press , USA Today and other major newspapers. Before joining NerdWallet, Margarette was a freelance journalist with bylines in magazines such as Good Housekeeping, Black Enterprise and Parenting. She is based near Atlanta, Georgia. APY 4.30% SoFi members with direct deposit can earn up to 4.30% annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.30% APY for savings. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 06/09/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet APY 3.30% Your annual percentage yield can be as high as 3.30% based on the following combined rate rewards: direct deposits (not including intra-bank transfers from another account) totaling $1,500 or more each month will earn 0.40%. A qualifying direct deposit is required for the remaining interest rate qualifications to apply. Ten (10) point-of-sale transactions per month using your Rewards Checking Visa® Debit Card for normal everyday purchases with a minimum of $3 per transaction, or enrolling in Account Ag...

What Is Compound Interest? When investing a sum of money, you’ll earn interest on the initial balance – as well as on the earned interest. To allow greater growth on your initial investment, it’s important to keep your money deposited in the bank over the long-term. The Compound Interest Formula The formula for compound interest is as follows: A = P (1 + r ⁄ n ) nt • P = initial principal (e.g. your deposit, initial balance, “current amount saved”) • r = interest rate offered by the savings account • n = number of times the money is compounded per year (e.g. annually, monthly) • t = number of time periods elapsed/how long you plan to save • A = final amount, including the initial principal and all interest earned over n years You can use this formula for your calculations – or use our compound interest calculator above. How to Use This Compound Interest Calculator Before calculating compound interest, let’s break down this financial calculator’s components: Initial Balance The amount of money you begin your account with is called the initial balance. For example, if you opened your investment account with $500, your initial balance would be $500. Rate of Return (Interest Rate) Time Period A time period is the length of time that money will be kept in your account. The longer the time period, the more your money will compound. Regular Contributions Determine how much money you’ll be contributing regularly (e.g. weekly, monthly). The dollar amount is important, so it’s best ...

Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Interest earned on your CD's accumulated interest. This calculator allows you to choose the frequency that your CD's interest income is added to your account. The more frequently this occurs, the sooner your accumulated interest income will generate additional interest. You may wish to check with your financial institution to find out how often interest is being compounded on your particular CD. The answer varie...