📈 Compound Frequency Calculator
Compare how different compounding frequencies affect your final investment amount.
About Compounding Frequencies
Compounding frequency determines how often earned interest is added to the principal. More frequent compounding leads to higher returns because interest starts earning interest sooner.
Frequently Asked Questions
Why does frequency matter?
With more frequent compounding, interest is calculated and added to your balance more often. That means your interest earns interest sooner, leading to exponential growth.
What is continuous compounding?
Continuous compounding is the theoretical limit where interest compounds infinitely many times per period. It gives the maximum possible return and uses the formula A = P × e^(rt).