Compound Interest Calculator
Online Compound Interest Calculator
About Online Compound Interest Calculator
With “Online Compound Interest Calculator” you can calculate the interest you might earn on your savings. As compound interest is simply the interest earned on interest. This compound interest calculator make these calculations easy and fast so you don’t have to do them manually. Since the compound interest formula is a little complex and it is difficult to calculate compound interest manually so one can use this online compound interest calculator to calculate compound interest in fractions of seconds. It useful for bankers, loan providing firms, financers, students and for a common man too.
What is Compound Interest?
It is an interest on principal amount plus interest or in other words it is an earned interest on both the money saved and the interest you earned. Two factors plays a crucial role in compound interest one is time and other is rate of interest.
Time:
The more time you enable, the more it will grow.
Rate of Interest:
Higher the rate of interest, higher will be the balance when compounding the investment.
Formula of compound interest is:
A = P (1+r/n) nt
The values are:
A = Future value of the investment
P = Principal amount invested
r = The rate of interest (decimals)
n = compounding frequency or Number of times interest gets compounded per period
t = Number of periods the money is invested for
How does Online Compound Interest Calculator work?
Simply enter principal amount (p, initial investment), interest rate (r, per year), number of years (t, time), and compounding frequency (n). As online compound interest calculator gives you the option to choose compounding frequency option from a monthly, quarterly and yearly. In the last click on calculate button.
Then it will show you output like:
After 10 years at an interest rate of 0.05% compounded 12 times per year, the investment will be worth ₹10050.12
