Tool
Compound interest calculator
See how a principal grows at a given rate, comparing compound interest (reinvesting) against simple interest, at the compounding frequency 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 (income tax) 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 (Mexican Treasury bills) reinvest at the maturity of each term, bank promissory notes at the agreed term, and funds reflect it in their daily price. Choose the frequency that best approximates your case.
Does this calculator account for taxes?
No: it shows the gross return. Interest is taxed — ISR applies to the real interest in your annual return — and institutions withhold a percentage of the principal as a provisional payment.
Next step
Tell us about your deal
Tell us how much you need and what collateral you can offer. We'll tell you frankly whether it's viable and how we'd structure it.
Request via WhatsApp →