## Compound Interest Calculator & Simple Interest

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The compound interest calculator shows the amount of interest earned on a fixed amount for a specific period of time. It helps you calculate the earnings of an investment for a given period of time and is calculated by multiplying the number of years by the interest rate and dividing it by the principal.

### How The Compound Interest Works

• Enter the value for principal, time and period into the 3 boxes respectively
• Select if you want to compute annually, half-annually, quarterly or monthly
• Hit the equal orange button to generate the worksheet.

#### Inside the Calculator’s Brain

• Simple interest is computed using SI = PRT/100%, where p is the principal (the original amount of loan borrowed from a bank), R is the rate (amount charged on a money borrowed), and I is the interest (is the cost you pay for borrowing the principal)
• The amount in simple interest is calculated from the addition of the principal to the simple interest = principal + simple interest
• The compound interest is computed using the following parameters

A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed

• Amount on compound interest is calculated by adding the principal to the compound interest. Mathcrave Equation Solver provides mathematical learning tools to help students establish a concrete understanding of problem-solving from grade school to university level for free.

## Resources

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