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Quarterly Compound Interest Calculator

Interest added every three months — 4 times a year. Adjust the inputs to see the year-by-year effect.

Investment Parameters
$
$
Final Balance
$844,900
Total Contributions
$190,000
Total Interest Earned
$654,900

Year-by-Year Breakdown

YearStarting BalanceContributionsInterest EarnedEnding Balance
1$10,000$6,000$1,048$17,048
2$17,048$6,000$1,629$24,676
3$24,676$6,000$2,258$32,934
4$32,934$6,000$2,938$41,872
5$41,872$6,000$3,675$51,547
6$51,547$6,000$4,473$62,020
7$62,020$6,000$5,336$73,356
8$73,356$6,000$6,270$85,626
9$85,626$6,000$7,282$98,908
10$98,908$6,000$8,377$113,285
11$113,285$6,000$9,562$128,846
12$128,846$6,000$10,845$145,691
13$145,691$6,000$12,233$163,924
14$163,924$6,000$13,736$183,660
15$183,660$6,000$15,363$205,023
16$205,023$6,000$17,124$228,147
17$228,147$6,000$19,030$253,177
18$253,177$6,000$21,093$280,271
19$280,271$6,000$23,327$309,597
20$309,597$6,000$25,744$341,342
21$341,342$6,000$28,361$375,702
22$375,702$6,000$31,193$412,896
23$412,896$6,000$34,259$453,155
24$453,155$6,000$37,578$496,733
25$496,733$6,000$41,170$543,904
26$543,904$6,000$45,059$594,962
27$594,962$6,000$49,267$650,230
28$650,230$6,000$53,823$710,053
29$710,053$6,000$58,755$774,807
30$774,807$6,000$64,092$844,900
Total$190,000$654,900$844,900

How much does quarterly compounding really change?

Quarterly is only marginally behind monthly. Over a decade at typical rates the gap is a fraction of a percent — not something to switch products over.

The table below holds everything constant — $10,000 at 5% for 10 years, no contributions — and varies only the compounding cadence.

Final balance by compounding frequency on $10,000 at 5% over 10 years
FrequencyTimes / yearFinal balancevs annual
Daily365$16,486.65+$197.70
Weekly52$16,483.25+$194.31
Monthly12$16,470.09+$181.15
Quarterly (this page)4$16,436.19+$147.25
Annual1$16,288.95

The spread across every cadence is $197.70 — under 1.2% of the balance. Raising the rate by a quarter of a point, or adding a small monthly contribution, moves the result far more than any change of frequency. Try it in the calculator above.

Where you meet quarterly compounding

Some certificates of deposit, bonds, and dividend-paying instruments settle quarterly. Company pension statements are often quoted on a quarterly basis.

Other compounding frequencies

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Frequently Asked Questions

  • Interest is calculated and added to your balance every three months — 4 times a year. From the next period onward you earn interest on that interest too. Some certificates of deposit, bonds, and dividend-paying instruments settle quarterly. Company pension statements are often quoted on a quarterly basis.
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