Compound Interest Calculator

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Formula to calculate compound interest

The formula to calculate the final balance with compound interest (interest on interest):

B = P(1+i/n)nt

  • B = Final Balance
  • P = Principal investment (initial balance)
  • i = interest rate
  • n = number of times interest is compounded per period
  • t = number of periods invested

Formula to calculate effective annual interest rate

The formula to calculate APY or effective annual interest rate:

APY = (1+(APR/n))n-1

  • APY = Annual Percentage Yield (effective annual interest rate)
  • APR = Annual Percentage Rate (nominal annual interest rate)
  • n = number of times interest is compounded per year