Compound Interest Formula Calculator

✖Principal Amount of Compound Interest is the amount invested, borrowed, or lent initially at a fixed rate for a given duration of time compounded n-times a year.ⓘ Principal Amount of Compound Interest [P]			+10% -10%
✖The Rate of Compound Interest is the percent of the interest paid over the principal amount for the due period per year compounded n-times a year.ⓘ Rate of Compound Interest [r]			+10% -10%
✖The No. of Times Interest Compounded Per Year is the number of times the interest is combined with the initial amount invested, borrowed, or lent per year.ⓘ No. of Times Interest Compounded Per Year [n]			+10% -10%
✖Time Period of Compound Interest is the number of years for which the principal amount is invested, borrowed, or lent at a fixed rate compounded n-times a year.ⓘ Time Period of Compound Interest [t]			+10% -10%

✖Compound Interest is the extra amount gained/paid on the principal amount for the time period at a fixed rate compounded n-times a year.ⓘ Compound Interest Formula [CI]

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Compound Interest Formula Solution

STEP 0: Pre-Calculation Summary

Formula Used

Compound Interest = Principal Amount of Compound Interest*((1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)-1)
CI = P*((1+r/(n*100))^(n*t)-1)
This formula uses 5 Variables

Variables Used

Compound Interest - Compound Interest is the extra amount gained/paid on the principal amount for the time period at a fixed rate compounded n-times a year.
Principal Amount of Compound Interest - Principal Amount of Compound Interest is the amount invested, borrowed, or lent initially at a fixed rate for a given duration of time compounded n-times a year.
Rate of Compound Interest - The Rate of Compound Interest is the percent of the interest paid over the principal amount for the due period per year compounded n-times a year.
No. of Times Interest Compounded Per Year - The No. of Times Interest Compounded Per Year is the number of times the interest is combined with the initial amount invested, borrowed, or lent per year.
Time Period of Compound Interest - (Measured in Year) - Time Period of Compound Interest is the number of years for which the principal amount is invested, borrowed, or lent at a fixed rate compounded n-times a year.

STEP 1: Convert Input(s) to Base Unit

Principal Amount of Compound Interest: 1000 --> No Conversion Required
Rate of Compound Interest: 5 --> No Conversion Required
No. of Times Interest Compounded Per Year: 4 --> No Conversion Required
Time Period of Compound Interest: 3 Year --> 3 Year No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CI = P*((1+r/(n*100))^(n*t)-1) --> 1000*((1+5/(4*100))^(4*3)-1)

Evaluating ... ...

CI = 160.754517722998

STEP 3: Convert Result to Output's Unit

160.754517722998 --> No Conversion Required

FINAL ANSWER

160.754517722998 ≈ 160.7545 <-- Compound Interest

(Calculation completed in 00.004 seconds)

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Created by Dhruv Walia

Indian Institute of Technology, Indian School of Mines, DHANBAD (IIT ISM), Dhanbad, Jharkhand

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The National Institute of Engineering (NIE), Mysuru

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< Compound Interest Calculators

Compound Interest Formula

LaTeX Go Compound Interest = Principal Amount of Compound Interest*((1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)-1)

Compound Interest given Final Amount

LaTeX Go Compound Interest = Final Amount of CI-Principal Amount of Compound Interest

< Compound Interest Calculators

Rate of Compound Interest

LaTeX Go Rate of Compound Interest = No. of Times Interest Compounded Per Year*100*((Compound Interest/Principal Amount of Compound Interest+1)^(1/(No. of Times Interest Compounded Per Year*Time Period of Compound Interest))-1)

Principal Amount of Compound Interest

LaTeX Go Principal Amount of Compound Interest = Compound Interest/((1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)-1)

Compound Interest Formula

Final Amount of Compound Interest

LaTeX Go Final Amount of CI = Principal Amount of Compound Interest*(1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)

Compound Interest Formula Formula

LaTeX Go

What is Compound Interest?

Compound Interest is the interest calculated on the principal and the interest accumulated over the previous period. The Compound Interest for an amount depends on both principal and interest gained over periods. Compound Interest varies with each year for the same principal amount. It is different from simple interest, where interest is not added to the principal while calculating the interest during the next period.

How to Calculate Compound Interest Formula?

Compound Interest Formula calculator uses Compound Interest = Principal Amount of Compound Interest*((1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)-1) to calculate the Compound Interest, The Compound Interest formula is defined as the extra amount gained/paid on the principal amount for the time period at a fixed rate compounded n-times a year. Compound Interest is denoted by CI symbol.

How to calculate Compound Interest Formula using this online calculator? To use this online calculator for Compound Interest Formula, enter Principal Amount of Compound Interest (P), Rate of Compound Interest (r), No. of Times Interest Compounded Per Year (n) & Time Period of Compound Interest (t) and hit the calculate button. Here is how the Compound Interest Formula calculation can be explained with given input values -> 160.7545 = 1000*((1+5/(4*100))^(4*94670856)-1).

FAQ

What is Compound Interest Formula?

The Compound Interest formula is defined as the extra amount gained/paid on the principal amount for the time period at a fixed rate compounded n-times a year and is represented as CI = P*((1+r/(n*100))^(n*t)-1) or Compound Interest = Principal Amount of Compound Interest*((1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)-1). Principal Amount of Compound Interest is the amount invested, borrowed, or lent initially at a fixed rate for a given duration of time compounded n-times a year, The Rate of Compound Interest is the percent of the interest paid over the principal amount for the due period per year compounded n-times a year, The No. of Times Interest Compounded Per Year is the number of times the interest is combined with the initial amount invested, borrowed, or lent per year & Time Period of Compound Interest is the number of years for which the principal amount is invested, borrowed, or lent at a fixed rate compounded n-times a year.

How to calculate Compound Interest Formula?

The Compound Interest formula is defined as the extra amount gained/paid on the principal amount for the time period at a fixed rate compounded n-times a year is calculated using Compound Interest = Principal Amount of Compound Interest*((1+Rate of Compound Interest/(No. of Times Interest Compounded Per Year*100))^(No. of Times Interest Compounded Per Year*Time Period of Compound Interest)-1). To calculate Compound Interest Formula, you need Principal Amount of Compound Interest (P), Rate of Compound Interest (r), No. of Times Interest Compounded Per Year (n) & Time Period of Compound Interest (t). With our tool, you need to enter the respective value for Principal Amount of Compound Interest, Rate of Compound Interest, No. of Times Interest Compounded Per Year & Time Period of Compound Interest and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Compound Interest?

In this formula, Compound Interest uses Principal Amount of Compound Interest, Rate of Compound Interest, No. of Times Interest Compounded Per Year & Time Period of Compound Interest. We can use 1 other way(s) to calculate the same, which is/are as follows -

Compound Interest = Final Amount of CI-Principal Amount of Compound Interest

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