Compound Interest Calculator
📘 Frequently Asked Questions – Compound Interest
❓ What is Compound Interest?
💰 Compound Interest is the interest calculated on the initial principal, which also includes all the accumulated interest from previous periods. It helps your investment grow faster over time.
🧮 How is Compound Interest calculated?
🔢 The formula for compound interest is:
A = P (1 + r/n)^(nt)
where:
P = principal amount
r = annual interest rate (decimal)
n = number of times interest compounded per year
t = number of years
📅 What does 'compounded annually' or 'compounded monthly' mean?
🕒 It means how often the interest is added to the principal balance. Compounding monthly means interest is added 12 times a year, compounding annually means once a year.
⚡ Why use a Compound Interest calculator?
⏱️ It saves time, avoids manual errors, and lets you easily see how your investment will grow over time based on different rates and compounding frequencies.
📱 Is this Compound Interest calculator mobile-friendly?
📲 Yes! It works smoothly on all devices including desktops, tablets, and smartphones.