Compound Interest Calculator
Calculate the profitability of your investment quickly and accurately.
Using our investment return calculator is very simple:
Capital to be invested:
Annual IRR:
Time (years):
Reinvestment periods (years):
| Years | Simple Interest | Compound Interest | Difference |
|---|---|---|---|
| {{table_data.labels[index]}} | {{table_data.datasets[0].data[index].toFixed(2)}} € | {{table_data.datasets[1].data[index].toFixed(2)}} € | {{( table_data.datasets[1].data[index] - table_data.datasets[0].data[index]).toFixed(2)}} € |
How to use the compound interest calculator?
Using our investment profitability calculator is very simple:
Initial capital to invest in the project
You just need to first add the total capital you want to contribute to the project.
Annual return
Following this, you need to add the IRR (Internal Rate of Return) that the project you are investing in has.
Time
Add the time horizon of your investment.
Why should you use it?
Importance of using the investment calculator
Using an investment calculator is crucial as it provides approximate results, avoiding any errors that may occur when calculating manually.
Our investment calculator is designed to perform complex calculations in a quick, simple, and precise manner.
Formula to calculate compound interest
To understand the operation of our compound interest calculator, we’ll show you simply what the formula is for calculating investment profitability:
P x (1 + r/n) ^nt
- P: Initial capital to invest
- r: Interest rate
- n: Number of compounding periods
- t: Time horizon of the investment
FAQs
What is a compound interest calculator?
The compound interest calculator is a tool that allows you to understand the long-term growth of the investment, considering the interest generated month by month.
How does compound interest work?
Compound interest generates interest monthly, quarterly, or annually, which is added to the initial capital. The interests generated will be reinvested in another project to gain more profits. And this repeats for all subsequent periods, creating a ‘snowball’ effect.
How is compound interest obtained?
To obtain compound interest, you simply need to use a simple formula: P x (1 + r/n) ^nt, or simply access Crowmie’s compound interest calculator and enter your data to calculate the investment profitability.
Why is it important to use a compound interest calculator?
It is important to use a compound interest calculator as it allows you to understand the growth of your investment in the long term, adjusting it to your interest rates or investment period.
Are there other ways to use a compound interest calculator?
Yes, there are other ways to use the compound interest calculator, such as, knowing the interest rate you need or the time it takes to double your investment.
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