Compound Interest Calculator
Understand the power of compounding with the help of Pocketflu’s compound interest calculator.
What is a Compound Interest Calculator?
A compound interest calculator is an advanced mathematical calculator that helps you calculate the return on your investments if compounded periodically. The calculation for compound interest differs from that of simple interest. The calculation for compound interest is more technical as compared to simple interest. In compound interest, the return calculated is on the principal plus the previous interest earned. Modern-day businesses work on the principle of the compounding effect, i.e. reinvesting the returns to earn more returns on their investment.
What is Compound Interest?
Compound interest is the interest charged on the loan amount or the deposit amount adding the interest earned in the previous term. The calculation of the compound interest differs from that of the simple interest. In mathematics compound interest is denoted by C.I.
The main difference between compound interest and simple interest is that in the case of simple interest, the amount on which the interest is calculated remains constant throughout the period. Whereas in compound interest the amount on which the interest is calculated keeps on changing.
