Compound Interest Calculator
Calculate how your investments grow over time with compound interest.
Compound Interest Calculation
Total Principal:$10,000
Total Interest:+ $0.00
Future Value:$0.00
About Compound Interest Calculator
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
How to Use?
- Enter the Principal Amount (initial investment).
- Enter the Annual Interest Rate (in percentage).
- Enter the Time Period in years.
- Select the Compounding Frequency (e.g., Monthly, Annually).
- The calculator will display the Future Value and Total Interest Earned.
Features
- Flexible Compounding: Supports Daily, Monthly, Quarterly, and Annual compounding.
- Detailed Breakdown: Shows both total future value and interest earned.
- Instant Results: See the growth of your money in real-time.
FAQ
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount of a loan or deposit. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods.
What is the formula for compound interest?
The formula is A = P(1 + r/n)^(nt), where:
P = Principal amount
r = Annual interest rate (decimal)
n = Number of times interest is compounded per year
t = Number of years