Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, which is only calculated on the original amount of money, compound interest grows over time because it adds interest to the principal as well as any interest that has already been earned.
Principal Amount
Total Interest
Total Amount
It gives precise predictions on how your investment or savings will grow over time, taking into account interest compounding. Instead of manually calculating compound interest using formulas, the calculator does it instantly, saving you time and effort. It helps you plan for future goals like retirement, education, or big purchases by showing how much your money can grow based on different interest rates and periods. You can compare different investment plans or savings options to determine which one offers the best returns.
The formula for Compound Interest:
CIThe future value of the investment/loan, including interest.
P The principal amount.
r The annual interest rate.
n The number of times the interest is compounded per year.
t The time the money is invested.