Tool
Compound interest calculator
See how a principal grows at a given rate, comparing compound interest (reinvesting) against simple interest, with the compounding you choose.
Final amount (compound)
—
Reinvesting the interest each period
Interest earned (compound)—
Final amount with simple interest—
Advantage of compounding—
Assumptions & method
- Compound: M = C × (1 + r/m)^(m×years), where m is the chosen compounding frequency.
- Simple: M = C × (1 + r × years); the interest is not reinvested.
- Gross return: it does not deduct ISR on interest or inflation (for that, use the inflation calculator).
- The rate is your own assumption; no future return is guaranteed.
FAQ
The essentials, in brief
What changes with the compounding frequency?
With the same nominal rate, compounding more often produces a little more: interest starts earning interest sooner. The big jump is from simple to compound; between monthly and daily the difference is small.
How often do investments compound in Mexico?
It depends on the instrument: CETES reinvest at the maturity of each term, bank notes at the agreed term, and funds reflect it in the daily price. Choose the frequency that best approximates your case.
Does this calculator account for taxes?
No: it shows the gross return. Real interest pays ISR (on the real interest, in the annual return) and institutions withhold a percentage on the principal as a provisional payment.
Next step
Tell us about your deal
Tell us how much you need and what collateral you offer. We'll tell you frankly whether it's viable and how we'd structure it.
Request via WhatsApp →