Compound Interest
Runs offlineCompound a yield over any period.
% APR
12 monthly, 365 daily
Final value
$14,898.46
Interest earned
$4,898.46
Effective APY
8.30%
Without compounding
$14,000.00
Compounding adds $898.46 over 5 years versus simple interest at the same rate.
About compound interest
The difference between a rate and a return is compounding frequency. Interest earned daily and reinvested grows faster than the same nominal rate paid once a year, and the gap widens as the rate rises — at 8% the difference over five years is real but modest, at 80% it is enormous. This shows the compounded result against plain simple interest so the contribution of compounding alone is separated from the rate itself.