Compound Interest Calculator

Principal: (The initial amount of money)

Annual Interest Rate (%): (The yearly interest rate in percentage)

Number of Years: (The duration of investment in years)

Number of Times Interest Applied per Time Period: (How often the interest is calculated and added per year)

Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. It differs from simple interest, where interest is not added to the principal. The more frequently interest is added, the greater the total interest will be.

The formula for compound interest is: A = P (1 + r/n)^(nt), where:

P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal)
n is the number of times that interest is compounded per time period
t is the time the money is invested for, in years