# Compound Interest Calculator

Year Opening Balance Interest Earned Contributions Closing Balance
Total Amount:

## how to calculate compound interest

A Compound interest is the interest that is earned on both the principal amount together with its interest and this continues to grow based on any other previously earned interest and principal.

### To calculate compound interest you will need to know the following :

• Principal amount: refers to the invested amount
• Interest rate: the rate at which interest is earned or charged
• Time period: the length of time over which interest is earned or charged
• Compounding frequency: is how often interest is compounded such as annually quarterly or monthly therefore you can use the following formula to calculate compound interest:

A = 〖p(1+r/n)〗^(n×t)

Where:

A: is the total amount of money at the end of the time period which is including the principal and interest

P: is the principal amount

R: is the annual interest rate

n: refers to the number in which interest is compounded per year

t: Is the number of years