Compound Interest
Calculate compound interest.
Frequently Asked Questions
What is the compound interest formula?
A = P(1 + r/n)^(nt), where A is the final amount, P is principal, r is the annual interest rate, n is the number of compounding periods per year, and t is time in years. Compound Interest = A − P.
How is compound interest different from simple interest?
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus previously accumulated interest, resulting in faster growth over time.