What is Compound Interest?
Compound interest (also known as compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
How is Compound Interest calculated?
To calculate Compound interest, you need to use the following formula.
A = p
1 + r / n
n t
I = A - P
How to use Compound Interest Calculator?
To use Compound Interest Calculator
- Enter principal amount
- Enter annual rate of interest
- Enter time period involved (t) in
- Enter period of compound (n)
- No need to press equal button. (It is automated)
- The final result you will see are compound interest and total amount to pay or receive.
- To Clear calculations press CE button