Compound Interest Calculator
About Compound Interest Calculator
This compound interest calculator helps you understand how your investments grow over time. It accounts for different compounding frequencies and optional regular contributions, making it perfect for long-term financial planning.
How to Use
- Enter your initial investment amount (principal)
- Set the annual interest rate
- Choose the time period and unit
- Select compounding frequency
- Add optional regular contributions
- Click "Calculate Interest" to see results
Compounding Frequencies
- Annually: Interest compounded once per year
- Semi-annually: Interest compounded twice per year
- Quarterly: Interest compounded four times per year
- Monthly: Interest compounded twelve times per year
- Daily: Interest compounded 365 times per year
- Continuously: Interest compounded infinitely
Formula Used
- Standard Compound Interest: A = P(1 + r/n)^(nt)
- Continuous Compound Interest: A = Pe^(rt)
- With Regular Contributions: A = P(1 + r/n)^(nt) + PMT × ((1 + r/n)^(nt) - 1) / (r/n)
- Where: A = Final amount, P = Principal, r = Rate, n = Compounding frequency, t = Time
Common Applications
- Investment planning and analysis
- Retirement savings calculations
- Loan and mortgage analysis
- Educational savings planning
- Business investment decisions