Compound Interest

Compound Interest Calculator

This calculator calculates the future value of an investment with compound interest.

Use Cases

• Savings: Predicting the growth of a savings account or IRA.
• Investing: Estimating returns on retained earnings.
• Loans: Understanding how interest accumulates on debt.

Formula

$$A = P \left(1 + \frac{r}{n}\right)^{nt}$$

Where:

• $A$ is the future value
• $P$ is the principal amount
• $r$ is the annual interest rate (decimal)
• $n$ is the number of times interest is compounded per year
• $t$ is the time in years