Compound Interest (CI) Calculator
About Compound Interest Calculator
The Compound Interest Calculator helps you find how much your investment will grow when interest is added not only on the principal but also on the accumulated interest. It’s a quick way to understand the power of compounding for savings, loans, or investments.
Formula (Simple Explanation)›
A = P × (1 + r/n)^(n×t)
Where: A = Total amount, P = Principal amount, r = Annual interest rate (in decimal), n = Number of compounding periods per year, t = Time in years.
Example:
Input: ₹10,000 invested at 10% annual interest for 2 years (compounded yearly)
Output: Total Amount = ₹12,100 and Interest Earned = ₹2,100.
Steps to Use:
- Enter your principal amount (₹).
- Enter the annual interest rate (%).
- Select the time period (years).
- Choose the compounding frequency (annually, quarterly, or monthly).
- Click 'Calculate' to see your total amount and interest earned.
Frequently Asked Questions
What is compound interest?›
Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods. It helps your money grow faster than simple interest.
How is compound interest different from simple interest?›
In simple interest, interest is calculated only on the principal, while in compound interest, interest earns interest — resulting in higher returns over time.
How often is compound interest applied?›
It can be compounded annually, semi-annually, quarterly, monthly, or even daily. The more frequent the compounding, the higher the total returns.
Is compound interest good or bad?›
It’s good for investments and savings because your money grows faster. However, it can work against you in loans, as the interest amount keeps increasing.