Compound Interest Calculator

✖Principal Investment Amount is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest.ⓘ Principal Investment Amount [A]			+10% -10%
✖Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis.ⓘ Annual Interest Rate [i]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n]			+10% -10%
✖The Number of Years Money is Invested is the total number of years for which the money is invested.ⓘ Number of Years Money is Invested [T]			+10% -10%

✖Future Value of Investment is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.ⓘ Compound Interest [FV]

⎘ Copy

👎

Formula

✖

Compound Interest

Formula

`"FV" = "A"*(1+("i"/"n"))^("n"*"T")`

Example

`"1.6E^9"="100000"*(1+("8"/"2"))^("2"*"3")`

Calculator

LaTeX

Reset

👍

Compound Interest Solution

STEP 0: Pre-Calculation Summary

Formula Used

Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested)
FV = A*(1+(i/n))^(n*T)
This formula uses 5 Variables

Variables Used

Future Value of Investment - Future Value of Investment is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.
Principal Investment Amount - Principal Investment Amount is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest.
Annual Interest Rate - Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
Number of Years Money is Invested - The Number of Years Money is Invested is the total number of years for which the money is invested.

STEP 1: Convert Input(s) to Base Unit

Principal Investment Amount: 100000 --> No Conversion Required
Annual Interest Rate: 8 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required
Number of Years Money is Invested: 3 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FV = A*(1+(i/n))^(n*T) --> 100000*(1+(8/2))^(2*3)

Evaluating ... ...

FV = 1562500000

STEP 3: Convert Result to Output's Unit

1562500000 --> No Conversion Required

FINAL ANSWER

1562500000 ≈ 1.6E+9 <-- Future Value of Investment

(Calculation completed in 00.005 seconds)

You are here -

Home » Financial » Investment » Compound Interest

Credits

Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

Himanshi Sharma has verified this Calculator and 800+ more calculators!

< 22 Investment Calculators

Portfolio Standard Deviation

Go Portfolio Standard Deviation = sqrt((Asset Weight)^2*Variance of Returns on Assets 1^2+(Asset Weight)^2*Variance of Returns on Assets 2^2+2*(Asset Weight*Asset Weight*Variance of Returns on Assets 1*Variance of Returns on Assets 2*Portfolio Correlation Coefficient))

Portfolio Variance

Go Portfolio Variance = (Asset Weight)^2*Variance of Returns on Assets 1^2+(Asset Weight)^2*Variance of Returns on Assets 2^2+2*(Asset Weight*Asset Weight*Variance of Returns on Assets 1*Variance of Returns on Assets 2*Portfolio Correlation Coefficient)

Jensen's Alpha

Go Jensen's Alpha = Annual Return on Investment-(Risk Free Interest Rate+Beta of the Portfolio*(Annual return of the market benchmark-Risk Free Interest Rate))

Compound Interest

Go Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested)

Certificate of Deposit

Go Certificate of Deposit = Initial Deposit Amount*(1+(Annual Nominal Interest Rate/Compounding Periods))^(Compounding Periods*Number of Years)

Actuarial Method Unearned Interest Loan

Go Actuarial Method Unearned Interest Loan = (Number of Remaining Monthly Payments*Monthly Payment*Annual Percentage Rate)/(100+Annual Percentage Rate)

Equivalent Annual Annuity

Go Equivalent Annuity Cashflow = (Rate per Period*(Net Present Value (NPV)))/(1-(1+Rate per Period)^-Number of Periods)

Portfolio Expected Return

Go Portfolio Expected Return = Asset Weight*(Expected Return on Asset 1)+Asset Weight*(Expected Return on Asset 2)

Total Stock Return

Go Total Stock Return = ((Ending Stock Price-Initial Stock Price)+Dividend)/Initial Stock Price

Annuity Payment

Go Annuity Payment = (Rate per Period*Present Value)/(1-(1+Rate per Period)^-Number of Periods)

Value at Risk

Go Value at Risk = -Mean of Profit and Loss+Standard Deviation of Profit and Loss*Standard Normal Variate

Profitability Index

Go Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment

Sharpe Ratio

Go Sharpe Ratio = (Expected Portfolio Return-Risk Free Rate)/Portfolio Standard Deviation

Capital Gains Yield

Go Capital Gains Yield = (Current Stock Price-Initial Stock Price)/Initial Stock Price

Treynor Ratio

Go Treynor's Ratio = (Expected Portfolio Return-Risk Free Rate)/Beta of the Portfolio

Average Return on Investment

Go Average Return = modulus(Total Value of Return)/Total Number of Returns

Information Ratio

Go Information Ratio = (Portfolio Return-Benchmark Return)/Tracking Error

Rate of Return

Go Rate of Return = ((Current Value-Original Value)/Original Value)*100

Straight Line Depreciation

Go Straight Line Depreciation = (Asset's Cost-Salvage)/Life

Portfolio Turnover Rate

Go Porfolio Turnover Rate = (Total Sales and Purchases of Shares/Average Net Assets)*100

Real Rate of Return

Go Real Rate of Return = ((1+Nominal Rate)/(1+Inflation Rate))-1

Risk Premium

Go Risk Premium = Return on Investment (ROI)-Risk Free Return

Compound Interest Formula

Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested)
FV = A*(1+(i/n))^(n*T)

How to Calculate Compound Interest?

Compound Interest calculator uses Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested) to calculate the Future Value of Investment, Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Future Value of Investment is denoted by FV symbol.

How to calculate Compound Interest using this online calculator? To use this online calculator for Compound Interest, enter Principal Investment Amount (A), Annual Interest Rate (i), Number of Periods (n) & Number of Years Money is Invested (T) and hit the calculate button. Here is how the Compound Interest calculation can be explained with given input values -> 1.6E+9 = 100000*(1+(8/2))^(2*3).

FAQ

What is Compound Interest?

Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods and is represented as FV = A*(1+(i/n))^(n*T) or Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested). Principal Investment Amount is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest, Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis, The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate & The Number of Years Money is Invested is the total number of years for which the money is invested.

How to calculate Compound Interest?

Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods is calculated using Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested). To calculate Compound Interest, you need Principal Investment Amount (A), Annual Interest Rate (i), Number of Periods (n) & Number of Years Money is Invested (T). With our tool, you need to enter the respective value for Principal Investment Amount, Annual Interest Rate, Number of Periods & Number of Years Money is Invested and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search