The Compound Interest Calculator allows you to calculate the compound interest from your principal amount, interest rate, number of years, and the frequency of compounding. It offers a simple interface for calculating and exporting data into an Excel workbook.
How to Use the Compound Interest Calculator
Opening the Compound Interest Calculator
Click on the Compound Interest Calculator button within the Calculators menu in the Tools category which will open a form with the following fields:
- Principal Amount: Enter the principal amount which is the initial sum of money.
- Interest Rate (p.a): Enter the interest rate in percentage per annum.
- No of Years: Enter the total number of years the money will be invested or borrowed.
- Compounding Period (p.a): Choose the frequency of compounding with options like Yearly, Half yearly, and Quarterly.
- Calculate Button
Once the required details are entered, click on the Calculate button to generate the following:
- Principal Amount: The amount you want to invest or borrow as a loan.
- Total Interest: The interest earned or paid over a specific time.
- Total Amount: The total amount after interest (Principal Amount + Total Interest).
- Amortization Table
On the right side, you will be able to see a table that provides detailed information for each year:
- Year: The number of years for which the interest is calculated.
- Yearly Interest: The interest earned or paid each year, based on the compounding formula.
- Total Amount: The cumulative total amount (principal + interest) for each year.
- Reset Button
When you click on the Reset button, the input fields will be returned to their default values.
- Export to Excel
At the top of the table, you will find an Export to Excel button and by clicking it, the tool will generate a new Excel workbook containing:
- A summary of Principal Amount, Annual Interest Rate, Number of Years, Total Interest Earned, and Total Amount.
- The full table with detailed yearly calculations for interest and total amount.
How the Compound Interest Calculator Works
- Input Fields: Enter the Principal Amount, Interest Rate (per annum), and Number of Years, and select the Compounding Period.
- Calculation: When you click on the Calculate button, it will calculate the compound interest using the formula.
- Table Breakdown: The table provides you a clear year-by-year breakdown of interest and total amount which will help you easily track the growth of your investment or loan.
Key Features of the Compound Interest Calculator
- Interactive Calculation: You can calculate compound interest easily with customizable input fields.
- Yearly Breakdown: The tool will display a year-by-year breakdown to help you visualize the growth of investment or loan over time.
- Export to Excel: You can also export the summary and table breakdown to a well-formatted Excel file for future reference or sharing with others.
Example Use Case
For Example, you invest 10,000 at an interest rate of 8% per annum for 5 years, with a compounding frequency for quarterly. After entering these values into the Compound Interest calculator, the following results are displayed:
The Compound Interest Calculator helps you calculate the interest earned on your investments or paid on loans with different compounding frequencies. It also can export the data into an Excel workbook making it even more easier for reporting, sharing and record-keeping.