Find the monthly compound interest earned from an investment with this Monthly Compound Interest Calculator. Input principal, yearly interest rate, and the amount of years the interest has been compounding.
What is monthly 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. In this case, monthly or 12 times per year.
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 monthly, the investment value would be:
Investment Value = $5,000 x ( 1 + .05/1)(3.5 x 12)
Investment Value = $5,954.07
More Resources...
Compound Interest Intro VideoThe Marshmallow Game on Compound Interest
Compound Interest Tutorial