Compound Interest Calculator

Compound interest adds earned interest back to the balance so later periods can earn interest on previous interest. Formula: A = P(1 + r/n)^(nt); Interest = A − P

Principal Amount:

Annual Interest Rate (%):

Compounding Periods per Year:

Number of Years:

Result:

Work out Compound Interest

Compound interest adds earned interest back to the balance so later periods can earn interest on previous interest.

Formula: A = P(1 + r/n)^(nt); Interest = A − P

A calculator can make the arithmetic faster, but the assumptions still matter. Check whether the result is a percentage, currency amount, ratio, or rate before comparing it with another figure.

Use the displayed formula as a quick audit trail when checking a result or explaining it to someone else.

References:

Wikipedia Compound Interest

CONTINUOUS COMPOUNDING

How to take advantage of compound growth

Frequently Asked Questions FAQ

What is compound interest?

Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods.

How does compound interest work?

Compound interest works by reinvesting the interest earned, allowing your investments to grow exponentially over time.

How can I use the Compound Interest Calculator?

Enter the principal amount, interest rate, and compounding frequency into the calculator to see the growth of your investment over a specific time period.

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