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The simple interest, or 2 You can also include regular deposits or withdrawals to see how they impact the future value. Enter the principal amount, interest rate, time period, and click 'calculate' to retrieve the interest.
Calculate compound interest on an investment, 401k or savings account with annual, quarterly, daily or continuous compounding
The calculator computes compound interest calculations and shows you the steps including the math. Start by multiplying your initial balance by one plus the annual interest rate (expressed as a decimal) divided by the number of compounds per year Next, raise the result to the power of the number of compounds per year multiplied by the number of years. We know that multiplying a present value (pv) by (1+r)n gives us the future value (fv), so we can go backwards by dividing, like this
Now we can calculate the answer In other words, $1,241.84 will grow to $2,000 if you invest it at 10% for 5 years. This compound interest calculator can help determine the compound interest accumulation and final balances on both fixed principal amounts and additional periodic contributions There are also optional factors available for consideration, such as the tax on interest income and inflation.
Calculate the effective periodic interest rate from the nominal annual interest rate and the number of compounding periods per year
Example, calculate daily periodic rate for a credit card account. When interest is compounded within the year, the effective annual rate is higher than the rate mentioned How much higher depends on the interest rate, and how many times it is compounded within the year. Simply enter your principal amount, interest rate, compounding frequency and the time period
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