Compound Interest Calculator
Compound interest is a financial concept that refers to adding interest to the principal sum of a deposit or loan. Essentially, it’s interest on interest, which means that the interest that has been added also earns interest. This effect can cause wealth to grow exponentially over time. Compound interest is compelling over long periods, making it a critical concept for investments and savings.
Enter Invested Amount
Maximum 10,000,00.
Enter Interest
Maximum 99.99%
Enter Time Interval
Maximum 50
Compound Interest Calculator Guide
Step 1: Input the Initial Investment Amount
Begin by entering the principal amount you plan to invest.
Step 2: Specify the Interest Rate
Input the expected annual interest rate (in percentage) that your investment will earn.
Step 3: Define the Time Interval
Choose the time interval for the interest calculation. This can be in days, months, or years, depending on your investment plan.
For Traders: Understanding the Time Interval
In trading scenarios, the time interval may represent the number of trades rather than a time period.
Example for Traders:
If you anticipate a 1% return per trade, you can calculate the compound interest after a series of trades. For instance, after 10 trades, input ’10’ as the time interval to see your compounded return.
Example For Investor:
To calculate the compound interest of the given data:
Principal: $3,500
Interest Rate: 10% per annum
Duration: 2 years
Just enter the 3500 in principal amount, 10 in interest rate, and 2 in compounding frequency. Simple!
