Compound Interest Calculator

1) Enter the principal amount, interest rate (annual rate/annual interest rate), number of years elapsed, and compounding cycle.
2) The number of times (period), number of years, total principal and interest, interest, and real interest rate are displayed.

Compound interest is an investment method in which the profits (interest) earned by investing an asset (principal) are reinvested in addition to the principal, thereby accumulating further profits (interest). So, profit (interest) will also be attached to profit (interest).

On the other hand, when you invest the original asset (principal) without changing it and earn profit (interest), it is called "simple interest".

• Calculation formula for 1-year compound interest: Principal × (1 + Yield (annual rate)) ^ Years of operation
• Compound interest calculation formula: Principal × (1 + Yield (annual rate) / Number of interest occurrences per year) ^ (Number of years of operation × Number of interest occurrences per year)

Calculation example

• If 1 million yen is invested for 5 years with an annual interest rate of 1.0% and compounded annually
  1,000,000 yen × (1 + 0.01)^ 5 years = 51,010 yen
• If 1 million yen is invested for 5 years with an annual interest rate of 1.0% and compounded monthly
  1,000,000 yen × (1 + 0.01/12)^ 60 months = 51,249 yen

This tool is available for free.