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
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?
How do you calculate compound interest monthly?
Here, r is the per annum rate of interest, and t is the time in years.
What is the annual interest rate formula?
Effective annual interest rate = [1 + (nominal rate / number of compounding periods)]^(number of compounding periods) – 1