Compound Interest Calculator

The compound interest formula is given by:
$$A=P\times (1+\frac{r}{n})^nt$$

Now, let's break it down into simpler steps:
Step 1. Calculate the interest rate per compounding period: rn
Step 2. Add 1 to the interest rate per compounding period: 1+rn
Step 3. Raise the result to the power of the total number of compounding periods: (1 + rn)^nt
Step 4. Multiply the principal amount (P) by the result from step 3: P×(1+rn)^nt
The final result (A) is the future value of the investment/loan after the specified time period.

Example:
Let's say you invest $1,000 at an annual interest rate of 5%, compounded quarterly (four times a year) for 3 years. P = $1,000 r=0.05 (5% as a decimal) n=4 (compounded quarterly) t=3 years
A=1000×(1+ 4 * 0.05) 4×3
Now, you can calculate this to find the future value (A).

A compound interest calculator is a tool that helps individuals and businesses: