Compound Interest Calculator
Estimate your earnings or the total amount due by calculating compound interest. Enter your principal amount, interest rate, time period, and compounding frequency to get your results.
Calculate Compound Interest
What is Compound Interest?
Compound interest is calculated on both the principal amount and the accumulated interest from previous periods. Unlike simple interest, compound interest grows exponentially over time.
Compound Interest Formula
The formula for calculating compound interest is:
A = P(1 + r/n)^(nt)
- A = Amount (Principal + Interest)
- P = Principal
- r = Annual Interest Rate (decimal)
- n = Number of times interest is compounded per year
- t = Time in years
Example Calculation
If you invest ₹10,000 at an interest rate of 6% for 3 years, compounded annually, the compound interest will be calculated as:
- Principal: ₹10,000
- Rate: 6% per year
- Time: 3 years
- Frequency: Annually
Compound Interest (CI) = ₹10,000 * (1 + 6% / 1)^(1 * 3) - ₹10,000 = ₹1,898.30
Total Amount = ₹10,000 + ₹1,898.30 = ₹11,898.30