Compound Interest Calculator
Calculate compound interest based on the entered amount, time, compounding period, and interest rate.
The Compound Interest Calculator is a tool designed to help you calculate the potential growth of your investment over time.
To calculate the compound interest, simply enter the initial investment amount, the investment period, the interest rate, and the compound frequency, and the calculator will provide you with the investment value and interest income you can expect to earn. Additionally, the calculator generates a visual graph that illustrates how your investment will grow over time, giving you a clear picture of the potential long-term benefits of your investment strategy.
How to calculate Compound Interest?
The investment value can be calculated by multiplying the principal amount (P) by the quantity of one plus the interest rate (r) divided by the number of times compounded per year (n) all raised to the power of the product of the number of years (t) multiplied by the number of times compounded per year (n).
- i = Initial Investment
- r = Interest Rate (as a decimal)
- n = the number of times the interest is compounded per year
- t = Compound Frequency (e.g. 1 for yearly, 12 for monthly, or 365 for daily)
Examples
| Initial Investment | Period | Interest Rate | Compound Frequency | Investment Value | Interest Income |
|---|---|---|---|---|---|
| $12000 | 5 years | 4% yearly | monthly | $14651.96 | $2651.96 |
| $50000 | 15 years | 5% yearly | yearly | $103946.41 | $53946.41 |
| $500 | 10 months | 25% yearly | monthly | $614.49 | $114.49 |