How to Calculate Compound Interest ?

What is Compound Interest?

The interest calculated on the original principal plus the interest that is not paid for the previous periods is called as the compound interest.

It is also known as compounding.

The period of compounding differs (annually , monthly,..)

Example

Consider you borrow a sum of Rs. 5000 from a lendor for an interest of 10 % for 4 years.

For 1st year : 5000 * (10 / 100) = 500

For 2nd year : 5500 * (10 / 100) = 550

For 3rd year : 6050 * (10 / 100) = 605

For 4th year : 6655 * (10 / 100) = 665.5

Hence, After 4 years you have to pay (5000 + (500+550+605+665.5) = 5000 + 2320.5 = Rs. 7320.5

Formula of Compound Interest and Total Amount

CI Calculator

Find your CI and total amount to be paid for

your principal money using online calculator.

Enter the borrowed money, interest and

compounding period into the calculator.

Your CI and total amount to be paid will be

yielded by the calculator.

CI Calculator

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