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Compound interest is a process of adding simple interest to the principal amount and then calculates interest on it. It is a method to calculate interest on interest. In this case, the principal amount will gradually increase as the earned interest accumulating to it.
Compound Interest Formula :
CI = (P[1+(R/100)]^n)-P
Total amount earned:
Amount = P[1+(R/100)]^n
Where P = Principal Amount; R = Rate of interest; N = Number of years.
Our free online compound interest calculator calculates interest daily, weekly, monthly, quarterly, and annually. It supports 15 different currencies interest calculations includes the dollar, pound, euro, rupee, krona, Leu, Lira, Peso, Ringgit, Shekel, & Zloty. Our compound calculator provides you results as total amount earned, Interest earned, Principal amount. The major difference between simple & compound interest is the interest amount is continuous compounding to the principal amount in the compound. Annual interest rate calculates only for initial investment amount & accrued interest is not added in principal amount for calculating simple interest.
It is a method of calculating interest on the interest. Here simple interest amount is accumulating to the initial principal amount then calculate the interest on it. In simple interest calculations interest consider for initial amount only interest compound frequency is not added to the principal amount.
Example: Calculate compound interest for the amount $10,000 is saved in an account at an interest rate of 4% for 10 years.
Given Data Principal Amount (p) = $10,000; Interest rate (r) = 4%;
Number of years (n) = 10 yrears.
We know the Compound Interest formula :
CI = (P[1+(R/100)]^n)-P
CI = (10,000 [1(4/100)]^10)-10,000
CI = 14,802.44 - 10,000
Answer:
Total interest earned
CI = 4,802.44
We make your work easy & calculate interest is too easy with our loan calculator. You need to follow the below instructions.
1. Open Compound Interest Calculator.
2. Enter the data Principal amount, Interest rate, and Number of years.
3. Select the yearly or monthly or weekly or daily compounded the amount.
4. Click on Calculate to get accurate interest results.