# Compound Interest Calculator

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Frequency
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Principal Amount
Rate of Interest(p.a)
%
Time Period(years)
year
Principal AmountInterestTotal Amount
1,00,000 0 1,00,000

Compound interest refers to the interest earned on both the principal amount and the accumulated interest of an investment or loan. Unlike simple interest, where interest is only earned on the principal amount, compound interest results in the exponential growth of an investment or debt over time. The formula for compound interest is: A = P(1 + r/n)^(nt) Where: A = the total amount of money after n years, including interest P = the principal amount (initial investment or loan amount) r = the annual interest rate (as a decimal) n = the number of times interest is compounded per year t = the number of years the money is invested or borrowed.

#### Compound Interest Calculator - FAQ

What's the difference between simple interest and compound interest?

Simple interest is calculated only on the principal amount of an investment or loan, while compound interest is calculated on both the principal and the interest earned. As a result, compound interest grows more quickly than simple interest.