This calculator is used to calculate the compound interest accrued and the final amount of your loan or investment.
Compound Interest is the type of interest calculated on your initial investment amount or loan amount (principal) along with the interest accrued over the previous period of time. Here, interest accrued in the previous compounding period is added back to the principal amount so as interest is calculated on the already-accrued interest during the next compounding period. i.e. Interest is calculated on the already accrued interest.
A = P (1 + r/n)nt
From the above formula, you can find the Final Amount (A) first. Then, if you want to find the Interest Accrued (CI), then subtract the principal from the final amount.
CI = A - P
Page Last Modified On: May 28, 2020