# Compound interest

This calculator computes compound interest

This content is licensed under Creative Commons Attribution/Share-Alike License 3.0 (Unported). That means you may freely redistribute or modify this content under the same license conditions and must attribute the original author by placing a hyperlink from your site to this work https://planetcalc.com/19/. Also, please do not modify any references to the original work (if any) contained in this content.

Compound interest arises when interest is added to the principal so that from that moment on, the interest that has also been added itself earns interest. This addition of interest to the principal is called compounding.

The compounding usually happens with some frequency (yearly, half-yearly, quarterly, monthly, daily, etc.) Usually, banks define nominal interest rate (f.e. 12%) and compounding frequency (f.e. monthly).

,

where

S - balance

P - principal

j - nominal interest rate (fraction of 1)

m - compounding frequency (number of compounding periods per year)

n - term (years)

#### Similar calculators

**

**PLANETCALC, Compound interest

## Comments