# Compound Interest Calculator

* When entering the percentage value, input the percentage without a decimal -- i.e. 5% is 5; the calculator considers the decimal

**Principal:**The money you invest with a bank or investment company.

**Interest rate:**The amount of money you get paid yearly for every dollar you invest

**Time:**Length of time money will be in the bank or with the investment company.

**Compound Frequency:**How often interest is calculated.

Compounded yearly = 1

Compounded semiannually (6 month basis) = 2

Compounded quarterly (4 month basis) = 4

Compounded monthly = 12

Compounded daily = 365

To make navigation on this page easier, select the topic you are interested in learning more about:

- Compound Interest Formula

- Sample Problem

- Video Tutorial for Compounding & Simple Interest

## Video Tutorial

The following is a really good explanation of compounding interest and simple interest

## Compound Interest Formula

The formula to calculate compound interest (when finding A) is:

A = P(1 + r/n)^{nt}

Where,

- A = Amount of investment after interest has been compounded
- P = Principal amount (initial investment)
- r = Annual interest rate
- n = Number of times the interest is compounded per year
- t = Number of years (time)