Compound Interest Calculator

Calculate the future value of your investment with our powerful and easy-to-use Compound Interest Calculator. See how your money can grow over time with the magic of compounding.

Why Use This Tool?

• Visualize Growth: See a clear breakdown of your future value, total principal, and total interest earned.
• Two Modes: Supports both simple compound interest and calculations with regular contributions (systematic investment).
• Flexible Options: Adjust the principal amount, interest rate, time period, and compounding frequency to match your financial goals.

How to Use?

1. Select a Tab: Choose between "Compound Interest" for a lump-sum investment or "Systematic Investment" for regular deposits.
2. Enter Your Details:
   • Principal Amount: The initial amount of money you are investing.
   • Annual Interest Rate: The yearly interest rate.
   • Years: The number of years you plan to invest for.
   • Compounding Frequency: How often the interest is calculated and added to the principal (e.g., monthly, quarterly, annually).
   • Monthly Contribution (for Systematic Investment): The extra amount you will invest each month.
3. Click Calculate: The calculator will instantly show you the projected growth of your investment.

Understanding the Formula

The calculator uses the standard formulas for compound interest:

• For simple compound interest: $A = P(1 + r/n)^{nt}$
• For systematic investment: $A = P(1 + r/n)^{nt} + PMT * \frac{((1 + r/n)^{nt} - 1)}{(r/n)}$

Where:

• A = the future value of the investment/loan, including interest
• P = the principal investment amount (the initial deposit or loan amount)
• PMT = the monthly payment
• r = the annual interest rate (in decimal)
• n = the number of times that interest is compounded per year
• t = the number of years the money is invested or borrowed for