Compound Interest
This Calculator helps you to calcualte the compound interest of the provided principal amount.
Compound Interest Calculator
Result:
Principal amount: | 0 |
Number of years: | 0 |
Interest Rate %: | 0 |
Compound Interest | 0 |
Split up of Interest and Principal:
How to use this Compound Interest Calculator?
- Principal Amount: Enter the principal amount.
- Number of years: Enter the number of years.
- Interest Rate: Enter the interest rate.
- Compounding Frequency: Number of times interest compounding in a year.
Compounding Frequency:
The Compound Interest calculator includes options for Compounding Frequency as,
- Monthly Compounding
- Quarterly Compounding
- Half-Yearly Compounding
- yearly Compounding
Interest will be compounded either at the start of the compounding term or at the end of the compounding term.
If you would like to calculate the initerest without compounding, please try our Simple Interest Calculator.
Compound Interest Calculation Formula:
- A = Maturity amount
- P = Principal amount
- R = Rate of interest in decimal
- n = number of compounding term in a year
- t = number of years
This Compound Interest calculator using the below formula in order to calculate the interest value.
A = P * [ (1 + R/n) ^ n*t ]
Where,
Compound Interest Calculation Example:
Below table will provide an example of how compound interest accumulated over the period of investment time. In this exampl, an investment of Rs.20000 was made for 4 years with interest rate of 10% with Yearly interest compounding.
Years | Calucation of Interest | Earned Interest | Closing balance |
Year 1 | Rs.20000 * 10% | Rs.2000 | Rs.22000 |
Year 2 | Rs.22000 * 10% | Rs.2200 | Rs.24200 |
Year 3 | Rs.24200 * 10% | Rs.2420 | Rs.26620 |
Year 4 | Rs.26620 * 10% | Rs.2662 | Rs.29282 |