How It Works:

A Compound Interest Calculator helps you calculate the interest earned on an initial amount of money, where the interest is added to the principal periodically. Here’s how it works:

This tool purpose is only for mathematical calculation and education.

1. Inputs:

• Principal (P): The initial amount of money you invest.
• Rate (R): The annual interest rate (as a percentage).
• Time (T): The time the money is invested for, in years.
• Compounds Per Year (n): How often the interest is compounded (e.g., annually, monthly).

1. Formula:
   The compound interest formula used is [A = P × (1 + r/n)^(n × t)]
   where:

• A = Total amount after interest
• P = Principal amount
• r = Interest rate (decimal form, so divide by 100)
• n = Number of times interest is compounded per year
• t = Time period in years

Compound Interest is then calculated as: A – P

1. Result:
   The calculator will show both the Compound Interest and the Total Amount (Principal + Interest).