Compound interest Calculator: Online options and how to calculate

Calculating compound interest can be done manually using mathematical formulas or through an online compound interest calculator, a simple and easy tool.

And today we’ll show you some options that are available out there on the internet, but before that we need to understand what is a compound interest.

What is Compound Interest?

Compound interest is a fundamental financial concept that describes the process by which interest is calculated not only on the original principal amount of an investment or loan but also on the previously accumulated interest.

So we can understand that compound interest involves reinvesting earned interest or accumulating owed interest at regular periods, tha will result in growth over time.

There’s a lot of factors that influence the calculation of compound interest, like the initial amount of the investment or loan, the annual interest rate expressed as a decimal, the period in years and the compounding frequency.

Compound interest is widely used in personal finance, investments, and banking loans. In investments, it allows money to grow more rapidly over time, making it a powerful tool for long-term wealth building.

Compound interest calculator options

Now we can actually check some options of compound interest calculator, let’s see:

1 – NerdWallet

This website is a reference when we talk about online tools that can facilitate your calculations, and the same goes when we search for a compound interest calculator.

With NerdWallet you can see how your savings or investments can grow, to obtain the results you’ll need to input the initial deposit, contribution amount, the frequency, years of growth, estimated rate of return and compound frequency.

After you fill this data you can see the results with a total interest and a principal value in years.

2 – Moneychimp

Moneychimp is a website that helps people create a budget, track your spendings and set financial goals.

Besides that, they also have a compound interest calculator, in this tool you’ll need to input current principal, annual addition, years to grow, interest rate, compound interest times annually and calculate to see how much it’ll be in future value.

3 – Bankrate

Bankrate is full of tools to help people with calculations and find the best options for their financial health.

They will provide a demonstration of how to create a strategy that makes your savings increase with calculations.

And for that you need to input the value you have saved, how many years you’ll save, the rate of return, the extra contribution and how often you will contribute, and how often you will compound interest, if it’s annually, quarterly and others.

4 – Calculatorsoup

Calculator soup it’s a site with only calculators, and the compound interest tool will help you to know the accrued amount and the principal amount.

You can choose what calculation you want between 4 of them, but for that you need to input some information, such as the principal amount, annual rate, compound in months or years, and time.

Now you can choose between 4 different options of compound interest calculators.