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Compound Interest Calculator
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The compound interest can be defined as the investment rate growing exponentially and not linearly as in the case of simple interest.

Compound Interest Calculator (Compounding Interest Calculator) is an online tool to calculate the compound interest if the principle amount, rate of interest per year and number of years for which compound interest has to be calculated are known. It calculates the compound interest as well as total amount (total amount = principle amount + compound interest).

Please enter Principle amount (P), Interest Rate per Year (R) and Number of years (n) and click solve to calculate the compound interest.

This calculator is for Compound Interest which is compounded yearly. It can't be used for compound interest being compounded monthly or daily.

 

Steps for Calculating Compound Interest

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Step 1 :  

Formula for calculating the total amount,


Total amount = P(1+(R/100))n.


Compound interest = Total amount - principal.



Step 2 :  

When the Time is given in months then:


1 month= 0.08, 2 months = 0.17, 3 months= 0.25, 4 months= 0.33, 5 months= 0.42, 6 months= 0.50, 7 months= 0.58, 8 months= 0.67, 9 months= 0.75, 10 months= 0.83 and 11 months= 0.92.



Examples for Compound Interest Calculator

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  1. Tom deposited the amount $\$$6000 at 10.4% interest rate for 2 years in finance.Find the compound interest and total amount.


    Step 1 :  

    Total amount = P(1+(R/100))n.


    Where P = $\$$6000 , R = 10.4% and n = 2.


    Plug in the values in the above formula.


    Total amount = $\$$6000*(1+(10.4/100))2


    Total amount = $6000*(1+0.104)2


    Total amount = $6000*(1.104)2


    Total amount = $7312.896



    Step 2 :  

    Compound interest = Total amount - principal.


    Compound interest = $\$$7312.896 - $\$$6000.



    Answer  :  

    Compound interest = $\$$1312.896.



  2. Jack deposited the amount $\$$12500 at 13.4% interest rate for 1 years in finance.Find the compound interest and total amount.


    Step 1 :  

    Total amount = P(1+(R/100))n.


    Where P = $\$$12500 , R = 13.4% and n = 1.


    Plug in the values in the above formula.


    Total amount = $\$$12500*(1+(13.4/100))1


    Total amount = $12500*(1+0.134)1


    Total amount =$12500*(1.134)1


    Total amount =$14175.



    Step 2 :  

    Compound interest = Total amount - principal.


    Compound interest = $\$$14175 - $\$$12500



    Answer  :  

    Compound interest = $\$$1675.



More Compound Interest Calculator
Daily Compound Interest Calculator Monthly Compound Interest Calculator
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