Compound Interest Calculator
Calculate compound interest with customizable compounding frequency to see how your investments can grow exponentially over time.
Compound Interest Calculator
Calculate compound interest with customizable compounding frequency to see how your investments can grow over time.
Enter values above to calculate compound interest
What is Compound Interest?
Compound Interest is an extra amount of money generated from a Principal amount of money and previously accumulated Interest. In simple interest the interest rate is applied on the principal amount throughout the time period but in case of compound interest, in every compounding time period (n), the interest is applied on the previously calculated interest and the principal. This makes the function of compound interest exponential in nature.
Formulas:
CI = Compound Interest
P = Principal Amount
r = Rate of Interest
t = Time of Compounding
n = Frequency of Compounding
Frequency of Compounding (n)
Common Compounding Frequencies:
- Annually → n = 1
- Semi-annually → n = 2
- Quarterly → n = 4
- Monthly → n = 12
- Daily → n = 365
How to Calculate Investment Doubling Time?
Time of doubling is the number of years your investment is going to be doubled. Since we know the formula of Amount accumulated in compound interest is:
We want the time for our amount to be double of the Principal, i.e., Amount = 2P
So:
Taking natural logarithm on both sides:
Solving for t: