# Compound Interest Calculator

Compound Interest Calculator is online tool that helps to find compound interest for a given amount.

## What is a Compound Interest Calculator?

Compound Interest Calculator is an online tool that finds the compound interest for a given principal amount. Cuemath's 'Compound Interest Calculator' helps you to find the compound interest for a given principal within a few seconds.

Note: Enter principal amount up to 5 digits, rate of interest up to 2 digits, time up to 2 digits.

## How to Use the Compound Interest Calculator?

Follow the given steps to use the calculator:

**Step 1:**Enter the principal, rate of interest, time period, and the compound interval in the respective input boxes.**Step 2:**Click on "**Calculate"**to find the compound interest for the given information.**Step 3:**Click on**"Reset"**to clear the fields and enter the new values.

## How to Find Compound Interest?

Compound Interest is the interest that is earned on your original deposit and on the interest that your money earns. The following formula can be used to find the compound interest.

### Compound Interest = P(1 + r/100)^{n} - P

Here P is the Principal value, r is the rate of interest, n is the number of time periods in the given time. Let us understand how to calculate compound interest with the help of the following example.

**Solved Example: **

Find the compound interest for a principal of $30,000 for a rate of interest of 12%, for a time of 1 year, if the interest is compounded every six months.

**Solution:**

The given information can be taken as the Principal (P) = $30,000, Rate of interest= 12% per annum, time period = 1 year. Since the interest is calculated for every six months the number of time periods in a year (n) = 1 year/6 months = 12/6 = 2. Similarly, the rate of interest for a time period of 6 months = 12/2 = 6%.

We shall apply this value in the compound interest formula.

Compound Interest = P(1 + r/100)^{n} - P

=30,000(1 + 6/100)^{2} - 30,000

=30,000 (106/100)^{2} - 30,000

=(30,000 × 106/100 ×106/100) - 30,000

= 33708 - 30000

= 3708

Therefore the compound interest $3708.

Now, try the calculator to find the compound interest for the following values.

- Principal of $5000 for a time of 2 years and rate of interest of 10% and compounded quarterly.
- Principal of $5000 for a time of 2 years and rate of interest of 10% and compound half-yearly.