Compound Interest Calculator

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest (calculated only on the principal), compound interest grows exponentially — the longer you invest, the faster your money grows.

The compound interest formula is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate (as a decimal), n is the number of times interest compounds per year, and t is time in years.

UAE savings accounts typically offer 0.5% to 3% per annum for AED accounts. Fixed deposits (time deposits) offer higher rates — typically 3% to 5.5% per annum depending on the bank and term. Islamic banks offer profit rates on Mudarabah savings accounts rather than fixed interest.