Compound Interest Calculator

Our Compound Interest Calculator is easy to use for everyone. And gives immediate response to Compound Interest calculations.

Compound Interest Calculator
Value after years: $
Present value (PV): $
Interest accrued: $
Effective interest rate: %
Total cash flow: $
Capital growth: %
Compound Interest Calculator

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Understanding Compound Interest's Complete Guide and Calculation

Here, what kind of topic is compound interest, what kind of topic is it, and what things are said here? We know here, So what is the difference between simple and compound interest? For example, if we are giving you $100 and giving it at the rate of 10%, then as per simple interest, The interest calculated in the first year will also be $100, the interest calculated in the second year will also be on $100, the interest calculated in the third year will also be on $100, and the interest that will come every year will be fixed and will be $10. But when we talk of compound interest, it means that in the first year, the interest we will get here is 10% of $100, that is, $10. Now, the interest in the first year will come to you, so what you will do here is add $10 to $100, and then it will become $110. Now, your principal is no longer $100; it has become $110. The interest that will be calculated will be on top of $110. Then we will find out it is 10%, which is $11, and by doing this, the value will keep on adding; that is, compound interest means that you get interest on the principal as well the interest on the interest. So here, this value is much bigger than simple interest. We will calculate the entire compound interest in three ways, and these three methods are quite popular. First, if we talk about it here, the first method is the ratio method, and the second is the successive method. And the third is the tree method.

Compound Interest Calculation Formula

compound interest formula:

=(1+)

  • is the future value of the investment/loan, including interest.
  • is the principal amount (initial investment/loan amount).
  • is the annual interest rate (as a decimal).
  • is the number of times that interest is compounded per unit (time in years).
Compound Interest Calculator

Example of calculating compound interest

let's look at an actual example. Suppose you invest $ 1,000 at an annual interest rate of 5%, compounded quarterly for 5 years. When we enter these figures into the compound interest calculator, we get the following -

=1000(1+0.054)4×5

After solving this equation, you'll find that the future value of your investment is approximately $ 1276.28.

This  Present Value Calculator is very easy to use for everyone. And gives immediate responses to Present Value calculations.

Our Future Value Calculator is easy to use for everyone. And gives immediate response to Future Value calculations.

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