Check the interest amount by providing the principal amount, interest rate and tenure details in the fields below.

₹

%

Yr

Principal Amount | : 1,00,000 |

Total Interest | : ₹76,234 |

Total Amount | : ₹1,76,234 |

Compound interest is a financial concept of the interest earned on both the principal amount as well as the interest that has accumulated over time. A compound interest leads to exponential growth, making it a highly rewarding possibility.

Calculating the compound interest on your investment or loan can help you determine the financial gain or loss you will face. You can calculate it using a compound calculator online, which is a handy tool to estimate your financial outcome.

Compound interest calculators are easy and convenient to use. All you need to do is follow these simple steps:

**Step 1:** Open the compound interest calculator page online .

**Step 2:** Enter the necessary information like the principal amount, interest rate and tenure.

**Step 3:** The Interest Amount will be displayed along with the Principal and Total Amount.

A compound percentage calculator can help you determine a variety of financial scenarios. Giving you an advantage to make better informed financial decisions. Given below are some points on how the calculator can help:

**Savings and investment:**using a compound calculator, you can estimate how much your savings or investments will grow over time. It will also help you consider different interest rates and compounding frequencies.**Loans and debt:**The calculator assists in understanding the total repayment amount if you have loans with compound interest. This is very important as it helps with budgeting and long-term financial planning.**Comparing investments or loans:**with a calculator you can compare different investment options or loan offers to help you choose the one that is more financially advantageous.**Informative purposes:**a compound interest calculator also acts as an educational tool that can help you understand the impact of C.I on their finances.

Compound Interest is calculated with the formula:

C.I= P [ (1+rn)n * t -1]

where**C.I** is compound Interest**P** is the Principal amount**r** is the annual interest rate**t** is the time period**n**is the number of compounding periods.

Compound Interest Example:

Let’s understand it with an example, let’s say the principal amount is 50,000, the rate of interest is 6% compounding quarterly and the time period is 3 years. So, using the formula:

C.I= P [ (1+rn)n * t -1]

C.I = 50,000 [{ (1+0.06/4)^(4*3)} -1]

C.I = 50,000 [{(1.015)^12} -1 ]

C.I = 50,000 [1.1956 -1]

C.I = ₹9781/-

Therefore, after 3 years, the interest will be approximately ₹9781/-

There is also a formula to manually calculate the potential compound interest maturity amount. You can do this by using the compound interest formula:

A=P (1+rn)n * t

Where A is the maturity amount, P is the principal amount, r is the annual interest rat, t is time period and n is the number of times that interest is compounded per year.

Below is a compound interest formula example for your better understanding on how to use it

Suppose the principal is ₹10,000, the annual interest rate 5% (0.05), n is 4 times and t is 3 years.

Using the formula:

A = 10,000 (1 + 0.05 /4) ^(4 x 3)

A = 10,000(1 + 0.0125) ^12

A = 10,000 x 1.158923

A = ₹11,607/-

Therefore, after 3 years, the maturity will grow to about ₹11,607/-

The annual compound interest rate calculator offers several advantages for you to benefit from, here are a few advantages of using the calculator:

**Accuracy:**ensures precise calculations and minimises the chance for errors that manual calculations have.**Time-saving:**the calculator provides quick results which saves time as compared to manual calculations.**Easy experimentation:**it allows you to test different scenarios using different interest rates, helping you get various options to make the right choice.**Financial planning:**the compound interest calculator helps you visualise the potential returns to set realistic financial goals.**Informed decision-making:**the calculator is a great financial tool that can help you understand how compound interest works. This can help you make informed decisions and set achievable savings targets.

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The formula used in a compound interest calculator is A=P(1+r/n)^(n x t).

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