Compound Interest Calculator

Principal, P :

Interest Rate per Year, R : %

Number of Years, n :

Total Amount =

Compound Interest=

 

Compound Interest Calculator is a free online tool that displays the compound interest for the given number. BYJU’S online compound interest calculator tool makes the calculation faster, and it displays the compound interest in a fraction of seconds.

How to Use the Compound Interest Calculator?

The procedure to use the compound interest calculator is as follows:

Step 1: Enter the principal amount, interest rate, and number of years in the respective input field

Step 2: Now click the button “Solve” to get the compound interest

Step 3: Finally, the total amount and the compound interest will be displayed in the output field

What is Meant by Compound Interest?

In maths, compound interest is calculated based on the principal amount and the interest accumulated over the past periods. The compound interest is different from the simple interest. Because in the simple interest the interest is not added while calculating the interest for the next period.

Compound Interest Formula

The formula to calculate the compound interest is given by:

Compound Interest = Amount – Principal 

Where

Amount, A = P(1+(r/n))nt

Here, P = principal

r = rate of interest

t = time in years

n = number of times interest is compounded per year

Frequently Asked Questions on Compound Interest Calculator

How is compounded interest calculated?

Compound interest is calculated by Subtracting the principal amount from the raise of the number of compound periods for the product of the initial principal amount by one plus the annual interest rate.

How do you calculate compound interest monthly?

Monthly Compound Interest = Principal(1 + r/12)^{12t} – Principal
Here, r is the per annum rate of interest, and t is the time in years.

What is the annual interest rate formula?

The formula for the annual interest rate is given by:
Effective annual interest rate = [1 + (nominal rate / number of compounding periods)]^(number of compounding periods) – 1

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