Compound Interest Calculator

In compounding interest, your money grows faster because you earn interest on both your original amount and the interest that keeps getting added over time, unlike simple interest where you earn only on the original amount.

The more often interest is compounded, the more your money grows. For example, if you earn 10% a year on ₹100, you’ll make ₹10 in the first year. In the second year, you’ll earn interest not just on ₹100, but also on the ₹10 you earned — that’s how compound interest works! The longer you leave your money untouched, the greater it will grow because compound interest grows over time 

Where:

• A = Final Amount (Principal + Interest)
• P = Initial Principal
• R = Annual Interest Rate (in decimal form)
• n = Number of times interest applied per time period (year)
• t = Time the money is invested or borrowed for (in years)

How to Calculate Compound Interest (CI):

Compound Interest = A − P

A = Final Amount, P = Initial Principal

Steps to calculate Compound Interest using calculator

• Enter Principal Amount (P)
• Enter the Annual Interest Rate (R)
• Enter the Time Period (t)
• Choose the Compounding Frequency (Yearly, Quarterly, monthly, Daily)
• Click on Calculate

Example:-

If you invest ₹50,000 at 10% annual interest compounded yearly for 3 years:

• Principal = ₹50,000
• Rate = 10%
• Time = 3 years
• Compounding = Yearly

Total Interest: ₹16550.00 Total Amount: ₹66550.00 earned

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