Use the below compound interest calculator to get a balanced idea of yearly compounding of how interest on your savings can grow over the years.
Using the compound interest formula that we will show after the form, you can determine how your money would grow with regular deposits.
Compounding of interest
Compound interest means adding accumulated interest back to the principal sum so that interest is gross on top of interest from that time started. The compounding rate depends on financial institutions or bank policies that vary in terms of daily, monthly, yearly frequencies.
What is the effective annual rate?
The effective annual rate is the rate that pays by financial institutions or banks after the compound interest. The effective annual rate becomes greater than the comprehensive interest rate.
Compound interest formula
The formula used in the compound interest calculator is A = P(1+r/n)(nt) Or At = P × (1 + r/n)nt
A = the value of the investment
P = the principal investment amount
r = the interest rate (percentage)
n = the number of times interest is compounded
t = the number of periods the money is invested
*nt will come in the power of (1 + r/n)