Compound Interest Calculator

Total investment

Enter Value between 1000 and 1 Crore
1000 1 Crore

Tenure (Years)

Enter Value between 1 and 30
1 30

Interest Rate (% P.A)

Enter Value between 1 and 30
%
1 30
Invested Amount
16,00,000
Interest Amount
₹ 9,57,568
Total Amount
₹25,57,568

A Detailed Guide on How to Use Compound Interest Calculator

What Is a Compound Interest Calculator?

What Is the Formula to Calculate Compound Interest?

There is a standardised compound interest formula. Individuals can use the following formula to compute compound interest easily,  

Formula for Compound Interest Calculation:

A = P (1+r/n) ^nt

The variables in the formula are as follows,

A= Compound interest 

P= Principal amount

R/r= Rate of interest

N/n= Number of times interest compounds in a year

T/t= Tenure/ number of years

Let’s decode the compound interest formula with an example,

Suppose an individual has invested ₹ 50,000 for 3 years at an annual interest rate of 10%. Therefore, in the first year, the accrued interest will be the following,

Pointers

Value

Principal

₹ 50,000

Interest Rate

10%

Interest Earned (1st Year)

₹ 50,000 x 10/100 = ₹ 5,000

Interest Earned (2nd Year- Interest will be calculated on the principal and accumulated interest of the 1st Year) Total Amount

₹ 50,000 + ₹ 5,000= ₹ 55,000 (Principal+ interest of 1st year) Hence, interest earned on 1st year= ₹ 55,000 X 10/100 = ₹ 5,500 Total interest earned/accumulated in the 2nd year= ₹ 5,500+ ₹ 5,000 = ₹ 10,500 ₹ 50,000+ ₹ 10,500 = ₹ 60,500

Interest Earned (3rd Year- Interest will be calculated on the principal and accumulated interest of the 1st year and 2nd Year) Total Amount

₹ 55,000 + ₹ 5,500 = ₹ 60,500 (Principal + interest of 2nd year) Hence, interest earned on 2nd year= ₹ 60,500 X 10/100 = ₹ 6,050 Total interest earned/accumulated in the 3nd year = ₹ 6,050 + ₹ 5,500 + ₹ 5,000 = ₹ 16,550 ₹ 60,500 + ₹ 6,050 = ₹ 66,550

The above calculation explains the difficulty of computing compound interest manually. To avoid such time-consuming calculations, one can undoubtedly rely on the formula used in a compound interest calculator. Read along!

How to Use a Compound Interest Calculator?

Currently, there are various compound interest calculators available on the internet. To use this calculator, one has to follow the steps mentioned below.,

Step 1 - One has to adjust the slider under the ‘Total Investment’. As per the above example, one has to adjust the slider and fix it at ₹ 50,000. Also, they can put the value in the adjacent box,

Step 2 - they have to put a value or adjust sliders under the ‘Tenure’ part. Here, they have to enter 3 years.

Step 3 - At last, they have to enter an interest amount (per annum- here, 10% p.a) in the relevant box. For example-

Inputs

Values

Total Investment (i.e. Principal Amount)

₹ 50,000

Tenure

3 years

Interest Rate

10%

Enter these details in respective boxes to learn about the compound interest amount. The calculator will show the following details.

Outputs

Values

Interest Amount

₹ 16,550

Total Amount

₹ 66,550

The above-mentioned tables clearly answer the question of how to calculate compound interest in a calculator. Here, individuals can see that this calculator instantly shows the results. This calculator offers several benefits to its users; read on.

What Are the Advantages of Using Compound Interest Calculators?

What Are the Components of Compound Interest?

What Factors Affect Compound Interest?

Frequently Asked Questions