Compound Interest Calculator
Compound interest is the situation where your wealth increases in a rapid way because you earn interest on your total investments, the accumulation of your principal amount and the interest it sustains. The probability of compound interest is endless. Most of the modern business today thrives flourishes on compound interest. An individual needs a proper compound interest calculator to make sure that they are getting the accurate rate of interest.
How can an Online Compound Interest Calculator Benefit You?
Compound Interest makes immense profit for business. Other benefits provided by the online compound interest calculator are:
- It helps you to decide an exact figure and return percentage over a specific time period.
- It helps you to identify the amount of investment you will need over a time period.
- Our websiteprovides you a customizable compound interest rate calculator which benefits you as per your requirements.
- It helps you to calculate the total returns as well as annual returns.
- It helps to keep deposit rates in line with the market as the Government of India decided to annualize the interest rates on National Savings Certificates or NSC. These changeswere effected in 2016. To know the amountof your savings schemes you should use an online compound interest calculator.
How to Calculate Compound Interest?
There is a standardized formula to calculate the compound interest. The formula is –
A = P(1 + r/n)^nt
Here,
|
P |
Principal amount |
|
A |
Compound Interest |
|
R/r |
Rate of Interest |
|
N/n |
Number of times the interest compounds in a year |
|
T/t |
Number of years |
An example has been given:
If an individual invests Rs. 50,000 with anyearly interest rate of 10% for 5 years then the returns for the first year will be 50,000 x 10/100 (Rs. 5,000).
Again, the interest will be calculated on Rs. 50,000 + Rs. 5000 or Rs. 55,000. The interest will be Rs. 5550 for the second year.
The sum will stand at Rs 6055 for the third year.
Performing these calculations manually is quite a difficult task. Therefore you must use a online compound interest calculator to make your calculations easy.
How to Use the online Compound Interest Formula Calculator?
These are the steps you need to follow to use the compound interest calculator:
- Input the principal amount, thetotal tenureand the interest rate you want to calculate.
- The calculator will provide the results before you in seconds.
Advantages of using the online Compound Interest Calculator
Our website offers you with an accurate compound interest calculator as per your requirements. This calculator is best as it is:
- Ease to operate.
- Results are error-free and accurate.
- Secure data.