What is Compound Interest Calculator?
You can use Compound Interest Calculator to calculate how much interest you have earned on an initial principal amount when the interest is compounded over time. Simple interest is calculated only on the principal amount, but compound interest is calculated both on the initial principal amount as well the accumulated interest from the previous periods. Your principal grows faster with compound interest than simple interest.
Uses of Compound Interest Calculator
Understanding compounding interest is very important as it is applied in almost all modern financial instruments like credit cards, student loans, mortgages, etc. Retirement funds like 401(k) or IRA are also calculated based on the compound interest formula. So, you will know how much retirement money you will get after “X” number of years.
Compound Interest Calculator
Compute the final amount and total interest earned on an investment.
Final Amount:
Total Interest Earned: