Cd Compound Interest Rate Calculator

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Compound Interest Calculator

Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. It's often referred to as "interest on interest." This powerful concept can significantly boost your savings and investments over time, making it a cornerstone of long-term financial planning.

The formula for compound interest is:

A = P (1 + r/n)^(nt)

Where:

  • A = the future value of the investment/loan, including interest
  • P = the principal investment amount (the initial deposit or loan amount)
  • r = the annual interest rate (as a decimal)
  • n = the number of times that interest is compounded per year
  • t = the number of years the money is invested or borrowed for

Understanding how compounding works can help you make informed decisions about saving, investing, and borrowing. Even small amounts compounded over long periods can grow substantially.

Calculate Your Compound Interest





Annually Semi-Annually Quarterly Monthly Weekly Daily



function calculateCompoundInterest() { var principal = parseFloat(document.getElementById("principal").value); var interestRate = parseFloat(document.getElementById("interestRate").value); var compoundingFrequency = parseInt(document.getElementById("compoundingFrequency").value); var years = parseFloat(document.getElementById("years").value); var resultElement = document.getElementById("result"); resultElement.innerHTML = ""; // Clear previous results if (isNaN(principal) || isNaN(interestRate) || isNaN(compoundingFrequency) || isNaN(years) || principal < 0 || interestRate < 0 || compoundingFrequency <= 0 || years < 0) { resultElement.innerHTML = "Please enter valid positive numbers for all fields."; return; } var ratePerPeriod = interestRate / 100 / compoundingFrequency; var numberOfPeriods = compoundingFrequency * years; var futureValue = principal * Math.pow(1 + ratePerPeriod, numberOfPeriods); var totalInterestEarned = futureValue – principal; resultElement.innerHTML = ` Principal Amount: $${principal.toFixed(2)} Annual Interest Rate: ${interestRate.toFixed(2)}% Compounding Frequency: ${getFrequencyDescription(compoundingFrequency)} Number of Years: ${years.toFixed(2)}
Future Value: $${futureValue.toFixed(2)} Total Interest Earned: $${totalInterestEarned.toFixed(2)} `; } function getFrequencyDescription(frequency) { switch (frequency) { case 1: return "Annually"; case 2: return "Semi-Annually"; case 4: return "Quarterly"; case 12: return "Monthly"; case 52: return "Weekly"; case 365: return "Daily"; default: return "Unknown"; } }

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