Compound Interest Calculator
Compound Interest Calculator
Compound interest is the addition of interest to the principal of a loan or deposit, or in other words interest on capital and interest. It is the result of reinvesting the interest or adding it to the borrowed capital instead of paying it or demanding payment from the borrower, so that the interest in the next period is immediately received on the principal in addition to the previously accrued interest. Compound interest is a standard in finance and economics.
Formula
Where:
- A is the final investment value
- P is the original amount invested
- r is the expected annual interest rate
- n is the compounding frequency(Daily/Weekly/Monthly/Yearly);
- t is the time period in years.