Compound Profit Calculator
See how compounding turns a rate into a maturity value.
About this calculator
Compounding means earning a return on your returns. This calculator shows the maturity value of an amount left to compound at a fixed annual rate over a set term, and how much of that is profit. It is handy for comparing term deposits, savings certificates, or any instrument quoted as an annual rate.
The compounding frequency matters: the same annual rate compounded monthly yields a little more than compounded annually, because profit is added back more often. Try switching the frequency to see the effect.
Frequently asked questions
What's the difference between simple and compound profit?
Simple profit is calculated only on the original principal. Compound profit is calculated on the principal plus previously-earned profit, so it grows faster over time. This tool computes compound profit.
Does more frequent compounding really matter?
Over short terms the difference is small, but over many years more frequent compounding adds up. The effective annual yield rises as compounding frequency increases.
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These calculators are for general information and planning only. They use the assumptions you enter and do not constitute financial, tax, or investment advice. Returns are not guaranteed; verify figures independently before making decisions.