Compound Interest Calculator with Regular Periodic Contributions: Calculate The Future Investment Value and The Interest on an Initial Principal Starting Amount of Money Lent, Deposited or Borrowed, by The Interest Rate, Duration of Time, Compound Frequency and Regular Periodic Contributions

Calculator: Compound Interest, Future Investment Value

FV = P × (1 + r/n)n×t + A × [(1 + r/m)m×t - 1] ÷ r/m

FV = Future Value of investment

P = Principal amount invested (the original contribution)

A = Regular contribution (additional money added periodically to the initial investment, P)

r = Annual Interest Rate the investment is earning

n = Number of times the interest compounds during a year

m = Number of times the regular contribution is made during a year

t = Number of years the investment is going to be active

t and r are expressed using the same time units

Latest calculations: compound interest and future investment values

Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 9,220.00 Annual interest rate: 2.50% Compound Frequency: daily Duration: 2 years and 9 months Dec 01 13:26 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 1,300.00 Annual interest rate: 1.85% Compound Frequency: monthly Duration: 3 years 6 months and 9 days Periodic contribution: 100.00 Contribution frequency: monthly Contribution added to the balance: at the beginning of each compounding period Dec 01 02:39 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 9,730.00 Annual interest rate: 3.50% Compound Frequency: monthly Duration: 2 years 8 months and 27 days Withdrawal Fee Rate: 0.50% Nov 30 15:46 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 9,730.00 Annual interest rate: 3.50% Compound Frequency: monthly Duration: 2 years 8 months and 27 days Withdrawal Fee Rate: 0.50% Nov 30 15:45 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 8,000.00 Annual interest rate: 3.15% Compound Frequency: daily Duration: 1 year 8 months and 20 days Periodic contribution: 7.50 Contribution frequency: daily Contribution added to the balance: at the beginning of each compounding period Nov 30 12:21 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 140,000.00 Annual interest rate: 2.50% Compound Frequency: daily Duration: 2 years Periodic contribution: 3,000.00 Contribution frequency: monthly Contribution added to the balance: at the beginning of each compounding period Nov 30 12:07 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 8,000.00 Annual interest rate: 3.15% Compound Frequency: daily Duration: 1 year 8 months and 20 days Periodic contribution: 7.50 Contribution frequency: daily Contribution added to the balance: at the beginning of each compounding period Nov 29 23:27 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 3,180.00 Annual interest rate: 1.95% Compound Frequency: daily Duration: 3 years and 1 month Withdrawal Fee Rate: 0.20% Nov 29 23:22 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 17,500.00 Annual interest rate: 3.00% Compound Frequency: monthly Duration: 3 years Periodic contribution: 2,500.00 Contribution frequency: monthly Contribution added to the balance: at the end of each compounding period Withdrawal Fee Rate: 0.10% Nov 29 23:22 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 17,500.00 Annual interest rate: 3.00% Compound Frequency: monthly Duration: 3 years Periodic contribution: 2,500.00 Contribution frequency: monthly Contribution added to the balance: at the end of each compounding period Withdrawal Fee Rate: 0.10% Nov 29 23:22 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 3,180.00 Annual interest rate: 1.95% Compound Frequency: daily Duration: 3 years and 1 month Withdrawal Fee Rate: 0.20% Nov 29 23:22 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 1,000.00 Annual interest rate: 0.40% Compound Frequency: monthly Duration: 1 year Periodic contribution: 500.00 Contribution frequency: monthly Contribution added to the balance: at the beginning of each compounding period Nov 29 22:38 UTC (GMT)
Calculate the compound interest amount and Future Investment Value. Principal (initial amount): 1,000.00 Annual interest rate: 0.40% Compound Frequency: monthly Duration: 1 year Periodic contribution: 500.00 Contribution frequency: monthly Contribution added to the balance: at the beginning of each compounding period Nov 29 22:38 UTC (GMT)
All user calculations: compound interest and future investment values


Compound interest.

Interest. Simple and compound interest. Differences.

  • When someone lends money to someone else, the borrower usually pays a fee to the lender. So the due interest is a sum paid or charged for the use of money or for borrowing it. The interest depends on:
  • 1) the duration of the loan
  • 2) the initial amount of money lent or borrowed, called principal
  • 3) the interest rate (the percentage of the principal charged as interest)
  • 4) the compound frequency.
  • Number 4 in the list above, the frequency of the compounding interest, also makes the difference between compound and simple interest.
  • 1. Simple Interest...

  • ... is calculated only at the end of the loan period as a fixed percentage of the borrowed amount.
  • 2. Compound Interest...

  • ... is calculated not only at the end of the loan period, but periodically, over shorter periods of time, for example daily, weekly, monthly, ... These shorter periods are called compounding periods.
  • The interest compounding frequency shows us how often is the interest calculated over the loan period. If the interest is calculated daily - then we have a daily compounding frequency, and the interest is said to be compounded daily. If it is calculated weekly - then we have a weekly compounding frequency, and the interest is said to be compounded weekly. And so on, monthly, quarterly, half-yearly, annually, ...
  • The amount that results as an interest at the end of such a shorter compounding period is immediately added to the principal amount, so that the interest accrued up to that point contributes to the calculation of the interest for the next compounding period, and not only the principal amount, as it was in the case of simple interest.
  • Thus, in the end, the interest also earns interest and not just the principal. It follows that the compound interest will produce a slightly higher amount in the form of interest than the simple interest.

How is the compound interest being calculated?

  • If the annual interest rate is r% and the interest compounding frequency is annual, then it means that the compounding period is one year long and the interest is calculated once a year.
  • 1. In one year, for the amount of P, an interest of (r% of P) is earned:
  • C1 = r% × P
  • The total amount accumulated after one year is:
  • A1 = P + C1 = P + r% × P = P × (1 + r%)
  • 2. After the second year, the interest is:
  • C2 = r% × A1 = r% × P × (1 + r%)
  • And the total amount is:
  • A2 = A1 + C2 = P × (1 + r%) + r% × P × (1 + r%) = P × (1 + r%) × (1 + r%) = P × (1 + r%)2
  • 3. After three years, the accrued interest is:
  • C3 = r% × A2 = r% × P × (1 + r%)2
  • And the total amount is:
  • A3 = A2 + C3 = P × (1 + r%)2 + r% × P × (1 + r%)2 = P × (1 + r%) × (1 + r%)2 = P × (1 + r%)3
  • n. After n years, the interest is:
  • Cn = r% × An-1 = r% × P × (1 + r%)n-1
  • And the total amount is:
  • An = An-1 + Cn = P × (1 + r%)n-1 + r% × P × (1 + r%)n-1 = P × (1 + r%) × (1 + r%)n-1 = P × (1 + r%)n

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