Compound Interest Calculator: Do you think winning lottery is the secret for becoming rich? No, it’s not the case Compound Interest and Patience can make you rich with time. Use our simple Compound Interest Calculator and know how much money you can grow over time.
Compound Interest Calculator has got more features like you can change the compounding intervals. By doing so, you can expect the interest earnings and compare which one can yield you more benefits. It’s simple to use and gives you Interest Value effortlessly. All you have to do is give the inputs such as Principle, Interest Rate and Time Duration, and the duration for which interest is compounded.
Get to know the procedure on how to use the Compound Interest Calculator, Basic Formula, Solved Examples, etc. You will understand the concept much better as you will get a detailed explanation.
How to find Compound Interest?
You can find the compound interest using the direct formula. Determine how much money you can have using the Compound Interest. We have given a simple formula by which you can understand the concept of compound interest much easier.
Formula to find Compound Interest is as follows
| A = P(1 + r/n)nt |
- A = Accrued Amount (principal + interest)
- P = Principal Amount
- I = Interest Amount
- R = Annual Nominal Interest Rate in percent
- r = Annual Nominal Interest Rate as a decimal i.e. r = R/100
- t = Time Involved in years
- n = number of compounding periods per unit t; at the END of each period
If you aren’t sure about the concept of Compound Interest check on the worked-out examples explaining everything in detail.
Example
Calculate compound interest on a principle of Rs. 10,000/- using the compound interest formula. Rate of Interest is 3% and the principle is compounded for every year and for a time duration of 2 years?
Solution:
As per the formula of Compound Interest A = P(1 + r/n)nt
Given P = 10,000
R = 3%
r = R/100
= 3/100
= 0.03
n= 1 year
t = 2 years
Substituting all the given values in the formula of Compund Interest we obtain the equation as such
A = 10000(1 + 0.03/1)1(2)
= 10000(1.03)2
= 617.57
Compound Interest for the given principle 10, 000 and rate of interest of 3 %, compounded for every year and a time duration of 2 yrs is Rs. 617.57/-
How to use Compound Interest Calculator?
Go through the simple and basic guidelines on how to use the Compound Interest Calculator. Following these instructions, you can arrive at the solution i.e. compound interest effortlessly on submitting the inputs.
- Initially, provide the required inputs it asks for in the input provision such as Principle, Annual Interest Rate and Time Duration, Compounding Interval.
- You can choose the inputs from the dropdown on certain factors like Time Duration on a monthly or yearly basis, etc.
- Once, you choose the relevant inputs tap on the submit button.
- You will get the Output i.e. Compound Interest Value in no time along with step by step explanation.
FAQs on Compound Interest
1. What is meant by Compound Interest?
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
2. How do you Calculate the Compound Interest?
You can calculate the Compound Interest easily by making use of our Compound Interest Calculator.
3. What is the formula for Compound Interest?
Formula for Compound Interest is given by A = P(1 + r/n)nt
4. Where can I get solved examples on Compound Interest?
You can find solved examples on Compound Interest on our page.