Compound Interest Calculator



Initial Deposit:    
Interest Rate:   % per   periods  
Number of
Compounding
Periods:


      
Total Interest:
Total Amount:



Most financial institutions disclose the compound interest rates on deposits yearly, but the compounding period is usually different - 1 month, 3 months, 6 months, 1 year, etc. One should pay attention to the compounding period because the same Annual Interest Rate could lead to a different effective annual interest rate if the compounding period is not the same. Actually an offer with an Annual Interest Rate 7% and compounding period of 6 months means effective annual interest rate 7.1225% and it is worse then an Annual Interest Rate 6.95% and compounding period 1 month where the effective annual interest rate is 7.1757%.

Compound Interest Calculator Examples:
  • To calculate the total interest for a period of 2 years when the Annual Interest Rate is 7% and the Compounding Period is 1 month one should enter "Interest Rate 7% per 12 periods" and the "Number of Compounding Periods" should be set to the number of months which is 24.
  • To calculate the total interest for a period of 9 months, when the Annual Interest Rate is 7% and the Compounding Period is 3 months one should enter "Interest Rate 7% per 4 periods" and the "Number of Compounding Periods" should be set to 3.
  • To calculate the total interest for a period of 6 months, when the Annual Interest Rate is 7% and the Compounding Period is 6 months one should enter "Interest Rate 7% per 2 periods" and the "Number of Compounding Periods" should be set to 1.