Compound Interest Calculator
Compound Interest Calculator – Calculate the Maturity amount of your investment based on compound interest
Compound Interest Calculator is an online tool to calculate the interest on your investment amount based on the compounding principle, wherein your earned interest is reinvested again and you earn interest on interest.
What is compound interest?
Simple Interest is the interest earned by on your invested amount based on a particular compounding frequency like daily, weekly, monthly, quarterly, half-yearly or yearly. In compound interest, you earn interest on the interest that is your earned interest is reinvested which makes you earn more interest.
Sample illustration of compound interest calculation
What is simple Interest?
Simple Interest is the interest earned by your invested amount by the period chosen by you. Simple interest is calculated on the basis of the period chosen by you, like days, weeks, months, quarters, or years. Unlike in compound interest, you don’t earn interest on interest as there is no reinvestment of interest. Simple interest works on the below formula
A = P(1 + rt) Where, A = Total accumulated amount on the basis of simple interest ( A = Principle + Interest), P = Principal amount, r = Rate of interest in decimals, r = R/100, t = time period (months or years)
Comparison table of Compound Interest and Simple Interest
Compound Interest formula
The compound interest formula used to calculate the overall accumulated amount over a period of time is calculated as,
A = P (1 + r/n) ^ nt
Where,
A = final amount,
P = Principal Amount,
n = compounding frequency,
r = rate of interest,
n = number of times the amount is compounded
How to use a compound interest calculator?
Compound interest calculator is easy to use online tool. To calculate the interest earned on your amount you must
- Enter the principal amount
- Choose the compounding frequency
- Choose the maturity period you want
- When you put all these details in the compound interest calculator, within a fraction of a second the tool generates results for you
How can a compound interest calculator help you?
- Compound Interest Calculator helps you to calculate interest earned on your investment for the entire maturity period within a fraction of a second.
- The calculator helps you with financial goals as you can plan your future financial life taking into account estimated maturity value.
- The compound interest calculator offers the flexibility to choose the duration in days, months, quarters, or years.
- It is easy and fast and answers your queries immediately