Compound Interest Calculator

Compound interest, as opposed to simple interest is when you earn interest on your investment over a period of time, due to which you witness a growth on your earnings.

The compound interest calculator allows you to see how your earnings can grow using compound interest. You can calculate compound interest on any of your investment with daily, quarterly or annually.

How does Compound Interest Work?

Compound Interest starts when your investment earns interest. There are two factors determine your compound interest

• Time- Your investment will only grow with time so you should make sure you give more time and stay invested for longer time, so that you can see more growth
• The rate of interest - A higher rate of interest will generate higher balance when compounding the investment

How to calculate Compound Interest?

The formula to calculate Compound Interest

Compound interest = total amount of principal and interest in future (or future value) minus principal amount at present (or present value)

= [P (1 + i)n] – P

= P [(1 + i)n – 1]

Where:

P = principal

i = nominal annual interest rate in percentage terms

n = number of compounding periods

For Example;

P = INR 10,000
r = 0.05
n = 1
t = 10

A = 10000 (1 + 0.05/1)10 = INR 16,288.95
So, the total interest you earned is INR 6,288.95

Benefits of Compound Interest Calculator

• Its available 24X7 online
• Easy to use
• There is reliability and accuracy

Unlimited usage

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