How to Use the Compound Interest Calculator

The Compound Interest Calculator is a powerful tool designed to help businesses and individuals calculate compound interest for savings, investments, or loans. This calculator provides insights into the growth of investments or the cost of borrowing over time. Follow these steps to use the calculator:

Step 1: Enter Principal Amount

• Input the initial amount invested or borrowed in the “Principal Amount (₹)” field.
• For example:
  • If you invest ₹100,000, enter 100000.

Step 2: Enter Annual Interest Rate

• Input the yearly interest rate in the “Annual Interest Rate (%)” field.
• For example:
  • If the annual interest rate is 8%, enter 8.

Step 3: Enter Time Period

• Input the duration of the investment or loan in years in the “Time Period (Years)” field.
• For example:
  • If the time period is 5 years, enter 5.

Step 4: Select Compounding Frequency

• Choose how often the interest is compounded from the “Compounding Frequency” dropdown menu.
• Options include:
  • Annually
  • Semi-Annually
  • Quarterly
  • Monthly
  • Daily

Step 5: Calculate Compound Interest

• Click the “Calculate Compound Interest” button to generate the result.
• The calculator will display:
  • Total Amount : The final amount after compounding.
  • Compound Interest Earned/Paid : The total interest accrued over the time period.

Understanding the Results

• Total Amount : The sum of the principal and the compound interest.
• Compound Interest Earned/Paid : The additional amount gained (for investments) or owed (for loans) due to compounding.
• Example:
  • If the principal is ₹100,000, the annual interest rate is 8%, the time period is 5 years, and compounding is annual:
    • Total Amount : ₹146,932.81
    • Compound Interest Earned : ₹46,932.81