How is compound interest calculated?

A = P(1 + r/n)^(nt). P = principal, r = annual rate, n = compounds per year, t = years.

What is the difference from simple interest?

Compound interest earns on previous interest; simple interest is only on the principal.

Calculate compound interest: principal, rate, time, and compounding frequency.

Principal ($)

Annual rate (%)

Years

Compounds per year

How is compound interest calculated?: A = P(1 + r/n)^(nt). P = principal, r = annual rate, n = compounds per year, t = years.
What is the difference from simple interest?: Compound interest earns on previous interest; simple interest is only on the principal.

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