In this article
- Compound Interest Calculator – Calculate Compound Interest Online
- How can a Compound Interest Calculator Help You?
- How to Calculate Compound Interest?
- How to Use Groww’s Compound Interest Formula Calculator?
- Advantages of using Groww’s compound interest calculator
- Compound Interest Calculator – Frequently Asked Questions (FAQ)
Compound Interest Calculator – Calculate Compound Interest Online
Compounding interest, as opposed to simple interest, is the situation where your wealth increases exponentially because you earn interest on your total investments, the aggregation of your principal amount and the interest it incurs. Mathematically, the possibilities of compound interest are endless. Most of the modern business thrives on it. One needs a reliable compound interest calculator to ensure they are receiving the right ROI.
How can a Compound Interest Calculator Help You?
The nature of compound interest makes it extremely lucrative for businesses. When you use a compound interest calculator online, you can avail the following benefits.
- It helps you determine an accurate figure and percentage of returns over a certain time frame.
- A reliable calculator helps you identify how much investment you might need over a time frame. The required corpus of funds can then be arranged with convenience.
- Groww offers you a customizable compound interest rate calculator which helps you assign values based on your requirements.
- A compound interest calculator helps calculate the total returns as well as yearly returns in case you need to consider breaking such an investment as per your future financial planning. If so, it is also advisable to consider pre-closure charges of the investment corpus.
- To keep deposit rates in line with the market, the Indian Government decided to annualize the interest rates on National Savings Certificates. The changes were effected in 2016. To determine how much your savings schemes now work, you must use an online calculator.
How to Calculate Compound Interest?
Groww uses a globally standardized method to determine the total compound interest accrued. The formula is –
A = P (1 + r/n) ^ nt
The variables in the formula are the following.
|R/r||Rate of interest|
|N/n||Number of times interest compounds in a year|
|T/t||Number of years|
For example, if you invest Rs. 50,000 with an annual interest rate of 10% for 5 years, the returns for the first year will be 50,000 x 10/100 or Rs. 5,000.
For the second year, the interest will be calculated on Rs. 50,000 + Rs. 5000 or Rs. 55,000. The interest will be Rs. 5550.
For the third year, the amount will stand at Rs 6055 and so on.
Obviously, it is difficult to calculate these amounts manually. That is why you need a compound interest calculator in India to make the task easier.
How to Use Groww’s Compound Interest Formula Calculator?
Using Groww’s calculator is easy when you remember these easy steps.
- Enter the principal, rate, and tenor you wish to calculate compound interest for
- The calculator will display the results within seconds.
Advantages of using Groww’s compound interest calculator
Groww provides you with an accurate compound interest calculator for unlimited use. Groww is ideal for daily use thanks to –
- Ease of use.
- Reliability and accuracy.
- Data security.
Besides the compound interest calculator, you can also use a wide range of other calculators as seen below. Each one of our calculators is benchmarked against the best in the business and is ideal for everyday use.
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Compound Interest Calculator – Frequently Asked Questions (FAQ)
Here are some simple answers to very common questions.
- Is there a separate calculating system for simple interest too?
Since no business or enterprise is run on the concept of simple interest, there is no separate calculator designed specifically for that purpose.
- Can I calculate my returns on National Savings Certificates too?
You can use the online compound interest calculator in this instance.
- How many times can I use the calculator?
There is no fixed upper limit on the calculator. You can use it whenever you need it.
- Is my data secured with this website?
Groww places great stress on personal data security and sanctity. Our servers are designed to store your data securely.