## Compound Interest Calculator

Find the compound interest earned from an investment with this Compound Interest Calculator. Input principal, yearly interest rate, the amount of years the interest has been compounding, and how many times per year the interest is compounded.

## What is compound interest and how do you find compound interest?

To find the final value of an investment use this compound interest

formula:

Investment Value = P x ( 1 + r/n )^{(Y x n)}

P = Principal Value

r = Yearly Interest Rate in decimal form ( example: 5% in decimal form

is .05 )

Y = Life of the investment in years

n = how many times per year the interest is compounded

Example: An original investment of $5,000 held for 3.5 years at an

interest rate of 5% would result in the following values.

If compounded yearly, the investment value would be:

Investment Value = $5,000 x ( 1 + .05/1)^{(3.5 x 1)}

Investment Value = $5,938.43

The same investment compounded weekly would result in:

Investment Value = $5,000 x ( 1 + .05/52 )^{(3.5 x 52)}

Investment Value = $5,955.88