HOW IT IS CALCULATED
Calculate compound interest
Interest is periodically added to the balance so later interest also applies to earlier interest.
Instant resultClear formulaRuns locally
01Values
02P × (1 + r/m)^(m×t)
03Result
Compounding frequency affects the final amount.
Compounding creates growth on previous growth
That is the key mathematical difference from simple interest.
02
In short
What logic does the calculator use?
P × (1 + r/m)^(m×t)
Example?
Compounding frequency affects the final amount.